Precision in Lovelaces
No more rounding up to the minimum ADA
Last updated
No more rounding up to the minimum ADA
Last updated
There are technical hurdles with minimum of 1 ADA rewards. That's the reason why in most instances rewards (transaction fees or even royalties) for assets valued at 50 ADA and below are omitted and if not then you as a buyer can end up paying 30% or more in fees.
Let's consider the scenario with current Smart Contracts:
If you decide to sell an NFT valued at 10 ADA, you would typically encounter a royalty fee of 1 ADA (which is rounded up from 0.5 ADA - in case of 5% royalties), a service fee of 1 ADA (rounded up from 0.2 Ada - in case of 2% service fee), and a transaction fee of approximately 0.2 ADA.
By calculation, you should be left with 7.8 ADA. However, those fees are rounded to the minimum 1 ADA, resulting in a final balance of 6.62 ADA, as shown in the example above. JoB Smart Contract:
If you were to sell an NFT worth 10 ADA, you would pay 0.5 ADA royalty fee (5%) and 0.25 ADA service fee (2.5%) and a blockchain transaction fee ~0.2 ADA. So are left with ~ 9.05 ADA.