Discussion: Commission/Fee Structure

Owned by Isaiah Williams
Last updated: Sept 06, 2021
6 min read

Author: @Isaiah Williams (isaiahwill610@gmail.com)

Contributors: EOS BlockSmith (eosblocksmith.io) @Thomas Le

Uploaded: 1/29/21

 

Note: This is a draft, we would like some input from the community on which option seems best.  For those that saw the original document, after our discussion, I decided that there was no need for the old option A (no transaction fees) so there are now only two options in this document.

 

Another note about the examples below: I chose arbitrary numbers for the FIO and domain transfer fees in the examples.  The key differences are that option A has a cheaper flat rate for transferring domains than option B.  To account for this, 2.5% of all sale prices will go to the FIO BPs in option A.  The 2.5% will essentially be paid out like transaction fees, but I have listed it separately for transparency within this document.

 

Option A:

  • Flat domain transfer fee (cheaper than the one that currently exists) – for transfers to and from Escrow Account

    • Seller pays double as a listing fee in order to send the domain to the Escrow Account

      • If cancellation occurs, transfer of domain back to seller is covered

      • If the domain sells the marketplace keeps the second half of the listing fee

    • Buyer pays this on top of the sale price so that they can receive the domain from the Escrow Account

  • Flat FIO transfer Fee

    • The buyer pays this on top of the sale price so that seller can receive payment for the domain

    • Or have this fee deducted from what the seller receives

  • 2.5% Marketplace Commission on sale price

    • Deducted from the amount that seller gets for domain

  • 2.5% FIO BP Commission on sale price

    • Deducted from the amount that seller gets for domain

 

Example A:

Domain transfer fee = 20 FIO

FIO transfer fee = 5 FIO

 

Samantha puts the domain “sam” up for sale for 1000 FIO

  • To do this Samantha pays the listing fee of 40 FIO

    • Upon listing, 20 FIO (half) of the listing Fee goes to the FIO Block Producers for the transaction of transferring the domain to the escrow account

    • If Samantha cancels her listing, then the rest of the listing fee will go to the FIO Block Producers

    • If the domain sells, then the rest of the listing fee will go to the FIO Domain Marketplace

  • She also agrees to have 2.5% of her sale price go to the marketplace and another 2.5% go to the Block Producers of FIO in the event that the domain sells

 

Samuel comes onto the FIO Domain Marketplace website, sees the domain “sam” up for a sale, and decides to buy the domain.  Samuel is then notified of the applicable fees associated with purchasing this domain:

  • 20 FIO, in order to transfer the domain

  • 5 FIO, in order to send his FIO to the seller of the domain

In total:

  • If the domain sells:

    • Samantha pays 20 + 20 = 40 FIO

    • Samuel pays 1000 + 20 + 5 = 1025 FIO

    • The marketplace gets 1000*2.5% + 20 = 45 FIO

    • The FIO Block Producers get 20 + 1000*2.5% + 20 = 65 FIO

    • Samantha gets 1000 – 25 – 25 = 950 FIO

    • Samuel gets ownership of the “sam” domain

  • If the listing is canceled:

    • Samantha pays 20 + 20 = 40 FIO

    • The FIO Block Producers get 20 + 20 = 40 FIO

    • Samantha gets ownership of the “sam” domain

 

Option B:

  • Flat domain transfer fee (that already exists) – for transfers to and from Escrow Account

    • Seller pays double as a listing fee in order to send the domain to the Escrow Account

      • If cancellation occurs, transfer of domain back to seller is covered

      • If the domain sells the marketplace keeps the second half of the listing fee

    • Buyer pays this on top of the sale price so that they can receive the domain from the Escrow Account

  • Flat FIO transfer fee

    • The buyer pays this on top of the sale price so that seller can receive payment for the domain

    • Or have this fee deducted from what the seller receives

  • 2.5% Marketplace Commission on sale price

    • o   Deducted from the amount that seller gets for domain

 

Example B:

Domain transfer fee = 50 FIO

FIO transfer fee = 5 FIO

 

Samantha puts the domain “sam” up for sale for 1000 FIO

  • To do this Samantha pays the listing fee of 100 FIO

    • Upon listing, 50 FIO (half) of the listing Fee goes to the FIO Block Producers for the transaction of transferring the domain to the escrow account

    • If Samantha cancels her listing, then the rest of the listing fee will go to the FIO Block Producers

    • If the domain sells, then the rest of the listing fee will go to the FIO Domain Marketplace

  • She also agrees to have 2.5% of her sale price go to the marketplace and another 2.5% go to the Block Producers of FIO in the event that the domain sells

 

Samuel comes onto the FIO Domain Marketplace website, sees the domain “sam” up for a sale, and decides to buy the domain.  Samuel is then notified of the applicable fee associated with purchasing this domain:

  • 50 FIO, in order to transfer the domain

  • 5 FIO, in order to send his FIO to send his FIO to the seller of the domain

In total:

  • If the domain sells:

    • Samantha pays 50 + 50 = 100 FIO

    • Samuel pays 1000 + 50 + 5 = 1055 FIO

    • The marketplace gets 1000*2.5% + 50 = 75 FIO

    • The FIO Block Producers get 50 + 50 = 100 FIO

    • Samantha gets 1000 – 25 = 975 FIO

    • Samuel gets ownership of the “sam” domain

  • If the listing is canceled:

    • Samantha pays 50 + 50 = 100 FIO

    • The FIO Block Producers get 50 + 50 = 100 FIO

    • Samantha gets ownership of the “sam” domain

 

Examples from other NFT marketplaces:

The last part of this document contains some examples of fees that other NFT marketplaces use.  The next two screenshots are examples of what a buyer and seller will see on Collectables.io, a marketplace for WAX NFTs.

 

This is an example of what the seller sees when they are listing an NFT for sale.  Under the “Sale Breakdown,” is a list price, which is the price that the seller wants to sell the NFT.  Next is the Author fee of 8% that goes to whoever created the NFT.  The last fee listed is the Collectables.io fee of 2% which goes to the creators of the marketplace being used.

 

 

This is an example of what a potential buyer will see when trying to purchase an NFT.  Under “Sale Breakdown,” it breaks down where percentages of money the buyer pays are going.  91% of what the buyer pays goes to the seller, 8% to the creator of the NFT, and 2% to the marketplace. 

 

The next example is from OpenSea, a marketplace for Ethereum NFTs.  OpenSea had their fees documented under their FAQs page.  A screenshot of their fees and a link to their FAQs page is below.

 

https://docs.opensea.io/docs/frequently-asked-questions

OpenSea is a little more flexible with how their fees work.  So there is one fee that goes to the creator of the NFT and this fee can either be paid by the buyer or the seller (it is up to the creator).  There is also a marketplace fee of 2.5% that is taken out of the sale price.

 

The next example is from AtomicHub, a marketplace for AtomicAssets NFTs.  Below is a screenshot of a portion of the screen a seller sees when trying to sell an NFT on AtomicHub. 

 

 

There are three fees that are taken out of what the seller receives for selling their NFT on AtomicHub.  The collection fee (6%) goes to the creator of the collection that the NFT is apart of.  The marketplace fee (2%) goes to AtomicHub.  I am not 100% sure what the tokenomics fee goes towards, but I believe it is for on-chain transactions.