Welcome to the inaugural SmartNFT drop! The purpose of Smart NFTs is to explore interesting payment mechanics on the decentralized layer 2 smart contract protocol Stellar Turrets. Who knows what or how it will happen but hopefully you'll have a cool NFT to show for it in the end.

Seem interesting? Got questions? You should join our Discord server.

The Details

Drop 00 of Smart NFTs is code named “Escalated Royalties”. The basic idea is an open offer NFT which gradually sells for more and more but rather than paying only the previous owner the payment "escalates" back to all previous owners at an algorithmic rate.

Now that sounds interesting right! But hang on we've only just begun, there's more wackiness and wonkiness afoot here to uncover.

Stellar transactions are made up of individual operations and execute sequentially together to a singular success or failure state. They are "atomic". A single Stellar transaction can include up to 100 operations. We're going to make use of that in this contract by escalating the NFT payment back to the previous 95 owners only. 95??!! I thought you said 100??!! Yes, chill, yikes. I need 5 operations to do some things besides back escalation payments. We'll get to that in a moment.

Let's talk math on these 95 payments because while it's not complex it's not exactly simple either. Payments begin at 0 and move forward via this calculation:

Math.ceil((total_number_of_nft_owners / 95) ** 2)

And that amount is paid to each previous owner up to the max ops - 5 or:

Math.min(total_number_of_nft_owners, 95)

This algorithm allows for several key features for the progressive sale of the NFT.

All payments are for whole numbers, no weird fraction payments.
The NFT will get progressively more expensive yet not outrageously so, the progression is gradual.
There is no profit ceiling, the earn potential increases with each subsequent NFT purchase.

There are an infinite number of algorithmic options here but this one is ours and I'm quite pleased with it.

<aside> 🗣 Massive shoutout to Markus Paulson and Alex Mootz of Script3 for their help on this initiative. They're much better at financial math than I am.

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