Arweave is best known for its storage capabilities. However, the platform came up with a revolutionary way to monetize your content. It allows you to attach license rights to your content.
Let’s welcome their new UDL or Universal Data License. There are various tools for UDL that you can use to start monetizing your content. So, let’s take a closer look at this UDL that Arweave cooked up.
Today we are excited to introduce the beta release of the Universal Data License (UDL), a framework for content monetization and remixing on the permaweb.
This license allows all creators to set their own terms and gives developers access to a huge library of open data.👇🧵 pic.twitter.com/YhI1jwNUD0
— Forward Research (@fwdresearch) June 29, 2023
The UDL is a great tool. However, if you don’t know how it works, it won’t serve you well. So, to reiterate, the UDL allows you to attach license rights to your content. In other words, it allows you to monetize your content. You can set parameters to your liking. For example, the royalties, split, or duration of the license. This ArWiki article explains this in detail.
You can add predefined tag names to your content, together with their values. Once you add it to Arweave, the names and values of the tags match the same UDL sections. This grants the licensee(s) the specified rights. It’s immediate and worldwide.
There are several ways to grant these rights. For instance:
- Derivations: You allow licensees to make derivative works. You use the ‘Derivation’ tag for this.
- Credit: By using this tag, a Licensee must give credit in the derivation. It names the creator.
- Indication: A licensee must mention the source content.
- License Passthrough: You need to stay within the license parameters.
- Revenue Share: You need to share a predetermined % share with the creator or content owner.
- Commercial Use: With this tag, you can deploy two predefined values. Allowed or Allowed With Credit.
- License Fee.
- Monthly or one time.
- Currency Parameter: The default token is $U, but you can change this, to, for instance, the AR token.
- License Rights Duration: Use the ‘Expires’ tag for this.
- Payment Addresses: Specifies the persons who receive the payments. Various payment options are available.
- Payment Mode: An attached smart contract may have more than one address. It defines how much of the payments owners receive.
This allows creators to programmatically specify their own desired royalties – be it 100%, 10%, or even 0% if they're feeling generous!
— Only Arweave (@onlyarweave) July 10, 2023
Atomic Assets are the native NFT standard in the Arweave space. The most widespread NFT standard is the Ethereum ERC721 standard. It goes all the way back to 2017. The CryptoKitties introduced this standard. This token was an NFT pioneer. Meanwhile, NFTs evolved. Currently, the ERC721 can’t meet the demands that NFTs can offer. Other standards evolved, like the ERC-1155 protocol or the EIP2615 protocol. The latter focuses on leasing.
Still, creators could monetize their NFTs. For example, they could sell their collections on NFT marketplaces. Or when their NFTs are resold, they could get a royalty percentage. However, one big issue remained, storage. The ERC721 never solved this problem. Let me explain, on-chain NFTs had their data (like the images), stored off-chain. This is to save costs, and they use centralized servers for this, This increases the chance that you may lose your asset data.
Now, Arweave solves this issue with the atomic assets. It treats all uploaded data as an atomic asset. For example, images or videos and Dapps. However, all data storage of the atomic asset is on-chain. They have a unique Arweave transaction ID. So, within the Arweave ecosystem, they are easily recognizable.
What sets these atomic assets apart, are these three features:
- Full on-chain data.
- Permanent storage.
- No storage capacity limits.
At last, we get to the UDL. A creator can add tags to the atomic assets. Uploading happens on the Atomic Assets Creator. These tags act now as the licenses. You can pay storage fees with the $U token. You can also fractionalize atomic assets. The picture below shows how an atomic asset and its smart contract share the same Arweave ID.
The BazAR marketplace is a digital marketplace on Arweave. It launched in late August 2023. Of course, it also offers atomic assets. You can trade on the marketplace with the $U token. Permaswap, a DEX, and Getu are two places where you can swap AR tokens to $U. Getu burns your AR during the swap.
The BazAR marketplace uses the universal content marketplace (UCM) protocol. This is a trustless on-chain orderbook, built for Arweave and the Permaweb. The Permaweb is like the HTTP protocol for the web. It’s built on top of Arweave. This marketplace removes intermediaries. So, it’s a great location to trade your UDL assets.
We are starting to test the atomic asset (NFT) uploader to upload collections to trade on @OurBazAR and exist on the permaweb. Reach out through dms to myself , @iam100c , or @OurBazAR to be the first to gain early access! pic.twitter.com/pK3TAAvmvi
— jajablinky ⓐ (@jajablinky) October 17, 2023
We showed you how Arwaeve allows you to monetize your content with their UDL. There’s an explanation of what the UDL is. We also explained how to set up the parameters for your content. Finally, we showed you where you can trade your content.
The current price of the AR token is $3.86. It has a market cap of $253.4 million. Out of the 65.4 million max supply of AR tokens, 65.45 million tokens circulate.
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