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What Tatum’s customized royalty model was designed to do
Tatum presented its customized royalty NFTs as an alternative to simpler royalty arrangements that commonly identify one recipient and rely on a marketplace to decide whether to pay. The announced model was intended to put more of the distribution policy into the NFT and its settlement path:
- Any number of creators could be listed as recipients.
- Each recipient could have an independently configured share.
- Royalties could be paid in an ERC-20 token associated with the NFT’s chain.
- A minimum “cashback” amount could be required on supported transfers, or set to zero to make payment effectively voluntary.
- Deployment and minting were presented through Tatum’s API or JavaScript tooling rather than requiring the team to operate nodes or write every contract from scratch.
These are claims from Tatum’s December 22, 2021 announcement, which named Ethereum, Polygon, Celo, Harmony, and Binance Smart Chain as supported networks at that time (Tatum’s announcement). They are not a guarantee of current availability.
Royalty declaration, quote, payment, and enforcement are different
An NFT can contain a royalty declaration without ever producing a payment. A useful distinction is:
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- Declaration: metadata or contract state identifies a recipient and rate.
- Quote: an interface such as EIP-2981 reports royalty information to a marketplace or integrator.
- Payment: a settlement transaction actually transfers funds to the recipient.
- Enforcement: contract logic rejects, penalizes, or otherwise prevents a transfer that does not follow the required payment path.
EIP-2981-style designs are primarily an information interface. Tatum’s 2021 description went further by marketing configurable recipients, payment tokens, and optional minimum-payment behavior as part of a customized settlement model. That does not mean EIP-2981 universally guarantees payment, nor does a customized contract guarantee that every marketplace, wrapper, bridge, or custodial system will honor it.
How multiple-creator royalties work conceptually
The basic accounting is:
sale price × recipient royalty percentage = recipient payout
For example, a sale could allocate separate shares to an artist, designer, and developer. The announcement did not establish whether configured percentages must total exactly 100% of a royalty pool, may total less than 100%, or are measured against the full sale price. It also did not specify the representation (percentage or basis points), rounding rule, duplicate-address handling, maximum recipient count, or whether settings are per collection or per token. Those details require the current contract source or API schema.
Questions to verify before deployment
- Are zero addresses rejected, and are duplicate recipients merged or rejected?
- What happens to rounding dust when a small royalty is divided among many recipients?
- Does a failed payment to one recipient revert the entire sale?
- Who pays the extra gas for each recipient transfer?
- Can an owner or administrator change recipients, rates, the token, or the minimum amount?
- Are settings immutable, upgradeable, or pausable?
Mandatory payment is limited to the contract path
Tatum described a minimum royalty or “cashback” amount to stop a buyer or marketplace from bypassing a percentage royalty by submitting a zero-price transfer. A zero minimum made the payment effectively voluntary.
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“Mandatory” must be read narrowly: the rule can apply only when the transfer uses the contract-controlled settlement logic. A direct transfer, an unsupported marketplace route, a wrapper, a bridge, or a custodial internal ledger may not execute that logic. A zero-price transfer may also be a gift or technical movement rather than an economic sale, so a minimum payment can create unexpected behavior in legitimate transfers.
How an ERC-20 royalty sale is supposed to settle
Using a fungible payment token changes the operational sequence. A typical controlled marketplace flow is:
- The seller lists the NFT and specifies the payment token.
- The buyer holds that token on the same network as the NFT.
- The buyer approves the marketplace or settlement contract to spend the token. Tatum’s current marketplace purchase documentation explicitly describes this allowance requirement for fungible-token purchases (buy an asset on a marketplace).
- The buyer submits the purchase transaction and pays network gas in the chain’s native asset.
- The settlement contract calculates the royalty and distributes the configured shares.
- The remaining proceeds go to the seller, less any marketplace fee.
- The NFT transfers to the buyer.
The NFT contract alone does not make every marketplace support this flow. The buyer needs the exact token, the marketplace must recognize it, and the token contract must behave compatibly. Stablecoins and other ERC-20 assets can have issuer controls, blacklists, pauses, transfer restrictions, unusual decimals, transfer fees, or limited liquidity.
Historical workflow versus a current Tatum build
What the 2021 workflow described
- Use Tatum’s JavaScript SDK or API.
- Deploy an NFT contract.
- Configure recipients and percentages.
- Select an ERC-20 royalty token.
- Mint NFTs.
- Transfer or sell through a compatible settlement mechanism.
- Query provenance data where supported.
What must not be copied blindly in 2026
The old article does not establish a current package name, installation command, import path, function name, request body, contract address, chain enum, percentage unit, ERC-20 parameter, or supported token standard. It also does not confirm that the old customized contract can still be deployed from the current dashboard or SDK. Verify those items against current documentation and deployed contract source before writing production code.
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What Tatum publicly documents now
Current Tatum references describe a broader, newer platform rather than confirming the 2021 customized-royalty endpoint:
- Authentication uses API keys tied to an account and plan. Each free account includes one mainnet key and one testnet key (authentication documentation).
- The NFT API exposes collection, metadata, owner, balance, and multi-token data endpoints (NFT API reference).
- The NFT deployment API describes general NFT contracts that support minting, burning, and transferring and are compatible with OpenSea royalties (NFT deployment reference).
- The minting reference covers native minting, NFT Express, custom or Tatum-provided contracts, and production signing guidance (NFT minting reference).
- Current plan limits include credit quotas and rate limits. The pages reviewed on August 18, 2026 showed a free plan with 100,000 credits and a three-request-per-second limit; plans and availability can change (plans and limits).
Those pages do not verify that the historical multi-recipient, ERC-20-payout contract remains available. Current public pricing checked August 18, 2026 listed dedicated API keys from $99 per month for 10 requests per second, with higher-throughput options at $249, $509, and $1,049; confirm the live price before budgeting (Tatum pricing).
Implementation prerequisites
- A Tatum account, API key, and selected testnet.
- A wallet and signing architecture, plus native currency for gas.
- An NFT contract or a Tatum-deployed contract.
- Stable metadata hosting, commonly IPFS or another durable URI.
- An ERC-20 token deployed on the same network if token-denominated settlement is required.
- A marketplace or settlement contract that actually invokes the royalty logic.
- Monitoring and reconciliation for token approvals, payouts, failed transactions, and marketplace fees.
Production signing and custody
Do not send a production private key to a remote API as a convenience. Tatum’s current references recommend private keys only for quick testnet work and point production users toward KMS and signature IDs; the JavaScript client may be an alternative where supported (NFT minting, ERC-20 minting). Design key custody, rotation, access control, and transaction approval before moving to mainnet.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Provenance: useful, but narrower than authenticity
The 2021 article showed a JavaScript provenance lookup and associated Tatum NFTs with transaction history. A provenance feature can expose blockchain transactions and contract events, but those are not the same as a complete sales history or a proof that an off-chain artwork, physical item, or identity claim is genuine. Keep separate records for:
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- On-chain transfers and events.
- Marketplace sales and prices.
- Metadata changes or version history.
- Physical-product certificates and identity verification.
Failure modes to test
- Missing approval: the buyer has enough ERC-20 tokens but the marketplace allowance is too low.
- Unsupported token: the asset charges transfer fees, pauses transfers, blacklists an address, or returns a nonstandard response.
- Rounding dust: split amounts do not divide evenly.
- Recipient failure: one payout reverts and may revert the complete sale.
- Low-value or zero-value transfer: the minimum payment produces an unexpected result.
- Gas growth: adding recipients makes settlement too expensive.
- Bypass route: a transfer path does not call the intended settlement contract.
- Unauthorized configuration: an account attempts to change rates, recipients, token, or minimum payment.
Choosing an architecture
| Approach | Strengths | Trade-offs |
|---|---|---|
| Tatum API or SDK | Managed infrastructure, deployment and data APIs, faster initial development | Vendor dependency, changing plans and APIs, and no confirmed continuity of the 2021 royalty feature |
| Custom Solidity contract | Control over recipients, tokens, enforcement, upgrades, and custody | Auditing, deployment, gas, security, maintenance, and marketplace integration become your responsibility |
| Open royalty standard | Simple interoperability with marketplaces that read the standard | Usually a royalty signal or quote, not universal payment enforcement |
| Marketplace-native split | Efficient inside one marketplace | Rules may not follow the NFT elsewhere |
| Off-chain accounting | Flexible allocation and easy updates | Requires trust, reconciliation, custody, and compliance controls |
When Tatum is—and is not—a sensible fit
Tatum may suit a team that wants a managed blockchain API, controls its own marketplace or transfer flow, needs automated collaborator splits, and can confirm the target chain and token in current documentation. A custom contract is usually better when the project needs independently audited, bespoke logic, chain-agnostic behavior, fiat settlement, or minimal vendor dependency.
Before committing, obtain the current contract interface and source, confirm supported chains and tokens, test the marketplace approval and settlement path, review upgrade and administrator powers, and model credits, rate limits, gas, custody, and failure recovery.
Frequently Asked Questions
Does EIP-2981 guarantee that NFT royalties are paid?
No. It generally exposes royalty information for a marketplace or integrator to use. Actual payment depends on the settlement flow and its enforcement rules.
Can Tatum’s 2021 customized royalty feature be assumed to work with today’s SDK?
No. The historical article does not verify current package versions, endpoints, request fields, or feature availability. Confirm those details in current Tatum documentation and contract source.
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Do buyers need an ERC-20 approval before purchasing?
For a marketplace purchase using a fungible token, the buyer normally must approve the marketplace contract to spend that token before submitting the purchase transaction.
The Bottom Line
Tatum’s 2021 design is best understood as a historical model for multi-recipient, ERC-20-denominated royalty settlement—not as a drop-in 2026 tutorial. Use it only after verifying the current feature, contracts, marketplace route, signing method, token behavior, and plan limits.
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