# Distributing Royalties

A core component of the Fraktal Protocol is distributing royalties to multiple owners. For example, 3 artists could collaborate on a piece, or a band could have multiple members each which should own a piece of the NFT they create.&#x20;

Fraktal splits up royalties based on ownership percentage. For example, if you own 30% of an NFT, you receive 30% of the royalty payments.

This enables creators to do some very cool things such as selling a piece of their work for upfront ETH, while retaining ownership of some of it for future royalties.

**Example**

3 Artists collaborate on a piece and own 33% of the NFT each. Each will receive 33% of royalties to their wallet. Now if 1 artist needs some cash, but does not have time to wait on future royalties, she could sell 10% of the NFT to her fans via a fixed-price or auction listing. This results in 2 artists owning 33%, 1 artist owning 23%, and fans owning 10%. When royalties are distributed, the artist still receives 23% of her royalites, while the fans now receive 10% in exchange for the ETH they paid to buy the Fraktions from the artist.


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