Royalties and Fees on Hinata.io

After careful consideration of the NFT landscape and our vision for a community-focused marketplace, the Hinata Foundation has decided on the fee structure for both primary and secondary sales.

Every NFT marketplace charges a fixed platform fee, much like a service charge for using their platform. Current industry leaders such as OpenSea take 2.5% from every sale for their treasury, while newer competitors like LooksRare and X2Y2 have undercut them to attract more users. How can platforms lower fees while still generating revenue, without drawing down on their treasury? Building a NFT marketplace is a very big project, and requires a substantial team to develop and improve upon.

To answer this question, it’s worth distinguishing that there are three separate costs to every NFT trade, and a few different types of collections.

Fee Definitions

Platform fee: The service charge applied to every transaction on the marketplace. This is always subtracted from the total sale price. Does not apply to OTC trades or transfers between wallets.

Creator royalties: Decided by collection owners, typically standardized across multiple marketplaces. Also subtracted from sale price.

Gas: The cost of using the Ethereum network for any transaction and paid to miners. This is not related to the sale price, goes to neither Hinata nor collection owners, and changes based on how busy the blockchain is.

For example, an Azuki NFT purchased for 1 ETH on the marketplace would be subject to a 1.5% platform fee and a 5% creator royalty, netting the seller 93.5% of the 1 ETH listing price. The buyer would also pay for the transaction, and thus be subject to a gas fee that ranges from $3 to $50 depending on network activity.

Hinata.io will also be implementing multiple platform fee reduction incentives which reward traders for volume transacted, NFTs owned, and staking status in our vault. More information on this will be available in a future post.

Collection Types

External collection: Any smart contract that is deployed outside of Hinata.io and whitelisted for trading.

Internal collection: Any smart contract that is deployed by Verified Creators or admins on Hinata.io.

Native collections: Collections that are in-house creations by the Hinata Foundation, including WAIFU, Metagens, and other unreleased content.

First Month is Fee-free!

For the first 30 days of trading on Hinata.io we will be charging 0% platform fees for all primary and secondary sales.

Collection royalties are still enabled at the marketplace contract level and will mirror percentages set on OpenSea. These can be upgraded in the future by collection owners once they “claim” the collection. Our maximum collection royalty is 98.5%.

Still the Fairest After 30 Days

Once our inaugural trading period has ended, there will be a maximum platform fee of 1.5%, still half a point below LooksRare. We’ve also designed a sliding scale fee system that incentivizes platform usage, NFT ownership, and staking status. Our three-tier fee schedule is decided by a few factors.

Base fees for all users (based on monthly volume)

Less than 50 ETH traded: no reduction

Between 50–150 ETH traded: -0.25% from platform fees

More than 150 ETH traded: -0.5% from platform fees

NFT Ownership fee reduction (monthly snapshot)

Own NFTs from 1–3 supported collections: -0.2% from platform fees

Own NFTs from 3–10 supported collections: -0.25% from platform fees

Own NFTs from 10+ supported collections: -0.5% from platform fees

Staking status

̶>̶5̶0̶0̶ ̶b̶o̶n̶d̶e̶d̶ ̶H̶i̶n̶a̶t̶a̶ ̶t̶o̶k̶e̶n̶s̶ ̶i̶n̶ ̶v̶a̶u̶l̶t̶ ̶f̶o̶r̶ ̶>̶6̶ ̶m̶o̶n̶t̶h̶s̶:̶ ̶-̶0̶.̶1̶%̶ ̶f̶r̶o̶m̶ ̶p̶l̶a̶t̶f̶o̶r̶m̶ ̶f̶e̶e̶s̶

̶>̶1̶0̶,̶0̶0̶0̶ ̶b̶o̶n̶d̶e̶d̶ ̶H̶i̶n̶a̶t̶a̶ ̶t̶o̶k̶e̶n̶s̶ ̶i̶n̶ ̶v̶a̶u̶l̶t̶ ̶f̶o̶r̶ ̶>̶6̶ ̶m̶o̶n̶t̶h̶s̶:̶ ̶-̶0̶.̶5̶%̶ ̶f̶r̶o̶m̶ ̶p̶l̶a̶t̶f̶o̶r̶m̶ ̶f̶e̶e̶s̶

Edit: The team is reconsidering linear fee reduction from staking.

From the above, platform fees can be reduced down to 0% through being an active member in our ecosystem. The tiered fee structure will serve active anime NFT enthusiasts on our platform, all while still providing a more cost-efficient alternative for less active folks that are simply looking to buy or sell a few NFTs. In addition, we believe this will also incentivize continued usage of our platform, as well as prompt users to become more active within our ecosystem.

Hopefully, it’s clear how Hinata will continue to allocate considerable resources into creating a community-focused platform and a comprehensive curated marketplace by maintaining the lowest fee structures, supporting equitable artist/creator royalties, and rewarding loyalty and volume. Thank you for being an important part of this exhilarating journey.

Signed,
The Hinata Team