Mechanism Explained

1. Transaction Fees as a Revenue Source

Every time a user buys or sells $MGR tokens, a small transaction fee is charged. This fee contributes to the platform's revenue pool, and a portion of it is distributed to artists who have NFTs on the platform. The more buying and selling activity, the higher the potential earnings for creators.

2. Distribution to NFT Holders

NFT holders play a central role in Magic Render’s revenue-sharing mechanism. The model rewards users who hold NFTs created using the platform’s AI Art Render feature, enabling them to earn passive income based on the platform’s transaction volume.

Types of NFTs and Corresponding Rewards:

• AI Image NFTs: NFTs created from AI-generated images are eligible for rewards from the Image NFT Reward Pool (1% of transaction fees).

• AI Video NFTs: NFTs created from AI-generated videos receive rewards from the larger Video NFT Reward Pool (2% of transaction fees).

Each pool accumulates a portion of the $MGR transaction fees and is distributed among NFT holders based on the proportional value and number of NFTs they own. This ensures that users who hold more valuable NFTs or larger quantities of them will receive a greater share of the rewards.

3. Automated Distribution

Magic Render uses Ethereum smart contracts to automate the entire revenue sharing process. These contracts handle the collection, allocation, and distribution of transaction fees, ensuring that all calculations are transparent and secure. This decentralized system eliminates any need for intermediaries, guaranteeing that rewards are distributed fairly and promptly.

Smart contracts also provide transparency by allowing users to verify all transactions on the Ethereum blockchain. This ensures that the distribution process is tamper-proof and fully traceable.

Distribution Steps:

1. Transaction Fee Accumulation: With each $MGR buy or sell transaction, 3% of the fee (1% for images, 2% for videos) is transferred to the respective reward pools.

2. Pool Growth: As the volume of $MGR transactions increases, the size of the reward pools grows, creating larger potential rewards for NFT holders.

3. Regular Payouts: Payouts* from the pools are made in Ethereum (ETH) and are distributed directly to the wallets of eligible NFT holders, ensuring transparency and simplicity.

*NOTE: To provide a more balanced and sustainable distribution of rewards for long-term NFT holders, MagicRender implements a gradual release mechanism. Rather than distributing the entire reward pool at once, the distribution contract will release 5-10% of the total reward pool daily. This percentage is chosen randomly within this range, ensuring that rewards are spread out over time. This approach prevents a sudden depletion of the reward pool and promotes ongoing, consistent incentives for NFT holders.

4. Incentivizing High-Value NFT Creations

Magic Render’s Revenue Sharing Model encourages the creation of high-value digital art by offering greater rewards for more valuable NFTs. Users who generate complex, visually appealing, or in-demand AI-generated content are incentivized to mint and hold their NFTs, as their higher value translates into larger shares of the reward pools.

Incentive Mechanics:

• Higher Transaction Volumes: The more valuable and actively traded an NFT, the more it contributes to the overall transaction fees, boosting the reward pool.

• Larger Pool Shares: NFTs that command higher prices in the marketplace—whether images or videos—earn their holders a proportionally larger share of the revenue pool.

This dynamic encourages creators to produce high-quality, sought-after content, benefiting the entire Magic Render ecosystem by driving both artistic and economic activity.

5. Long-Term Revenue Potential for NFT Holders

Unlike traditional digital assets, Magic Render’s NFTs provide ongoing financial rewards. As long as users hold eligible NFTs, they continue to benefit from the platform’s transaction activity, creating a sustainable source of passive income. This ensures that even long after an NFT is minted, its owner can still reap rewards from the platform’s growing user base and transaction volumes.

Key Advantages for NFT Holders:

• Passive Income: Earnings from the reward pools are distributed regularly, creating consistent revenue for NFT holders.

• Scalability: As Magic Render’s transaction volume grows, so do the rewards for NFT holders. This makes the model inherently scalable and financially sustainable as the platform expands.

• Liquidity through Trading: NFT holders can trade or sell their NFTs on the marketplace, allowing them to capitalize on both the resale value of their NFTs and the revenue-sharing rewards.