Skip to main content

Earning Color Yield

By holding Color NFTs, you are eligible to receive income derived from our market transaction fees based on usage of your colors in file based art and collectibles that trade on the Color Museum.​

For providing the market platform, we currently assess a 2.5% transaction fee. This is equal to OpenSea, and competitive to Foundation at 5% and SuperRare at 3%. All trading platform revenue pools in real time to the Color Pool smart contract.

The pool is split 50/50 between the Color Museum Treasury and Color NFT holders.

Color yield payout is won by Color NFT holders based on two criteria:​

  • Criteria No. 1: Exact match usage of your colors in the underlying image.

Take Doodles #1304 as an example.

Image

It's currently listed for 6 ETH. After trading hands on Color Museum, the 0.15 ETH collected from its sale would be distributed among Color NFT holders and the Color Museum development team.

Among Color NFT holders, yield is distributed based on proportional use of color in the traded NFT's image. In this case, 38.2% of the holder payout would go to owner of the Color NFT whose hexadecimal is #FBE37D and the remainder to the corresponding minted colors.

Image

Note: Colors must meet an inclusion threshold of 0.10% inclusion in the image to be eligible for yield.

  • Criteria No. 2: Your color being the closest to a color used in the image, based on the CIEDE2000 color distance algorithm.

The Color NFT Collection is limited to 10,000 colors, but file based artwork contain millions of different color possibilities. When an NFT trades with colors that have not been minted as Color NFTs, the fee is awarded to the closest minted color according to the CIEDE2000 algorithm.

You are also eligible to receive Color Yield from:​

  • collection fees that we collect on Color Museum and other markets from collections that we incubate, starting with the Color NFT Collection.

  • transaction fees that we collect on the Color Museum Gift Shop, through sales of physical derivatives of artwork incubated in the Curated Collection. (See Gift Shop.)

Withdrawing your accumulated yield requires a low gas transaction to the Color Pool smart contract.​

No staking transactions are necessary to earn Color Yield, simply hold Color NFTs in your Ethereum wallet.

Since our market supports trading NFTs for ETH, WETH, USDC, USDT, and DAI; yield that your colors generate will also be paid out in any of these currencies based on which was involved in the settlement of the underlying transactions.

Note: Color Yield begins to accumulate now with the trading of the Color NFT Collection. When a color changes hands, the color closest to the color sold wins the yield payout. Closest color computation is included in the Nearest Colors section of the Color NFT individual metadata page.

Withdrawals are scheduled to open in early Q2 of 2023, pending completion of the offchain Yield server responsible for computing and authorizing withdrawal payouts.

The Color Cube contains all minted colors spaced according to CIEDE2000 color difference algorithm.​

CIEDIE2000 was chosen due its recommended use in industrial applications for determining color differences by the International Commission on Illumination.

Image

Visit https://www.color.museum/cube to explore.