Framework

CRAFT-I's Framework

CRAFT-I's framework flow is achieved as below:

1. An SME creates a design and submits it to CRAFT-I.

2. CRAFT-I turns the design into an NFT and lists it on an NFT marketplace.

3. NFT investors purchase the NFT.

4. When the fund reaches CRAFT-I's target, CRAFT-I allocates the funds back to the SMEs to make the tangible products.

5. The SMEs sells the product to a customer.

Profits

Profit for the SMEs:

• The SMEs earn a royalty on each NFT sale.

• The SMEs earn the full sale price of the object when they sell it to a customer.

Profit for CRAFT-I:

• CRAFT-I earns a commission on each NFT sale.

• CRAFT-I earns a fee for facilitating the sale of the product to the customer.

Profit for the NFT investor:

• The NFT investor hopes to profit by selling the NFT for a higher price than they paid for it.

• The NFT investor may also benefit from the appreciation of the value of the object when it is sold to a customer.

Here is an example of how the profits might be distributed in a specific transaction:

• The SMEs create a design for a handmade handbag and aim to have 10 ETH to make more of the tangible products.

• CRAFT-I turns the design into 10 NFTs and lists them on an NFT marketplace for 1 ETH each.

• An NFT investor purchases the NFT for 1 ETH.

• When the fund reaches CRAFT-I's target (10 ETH), CRAFT-I allocates 80% ETH back to the SMEs and 20% to itself.

• The SMEs then use the 80% ETH to purchase the materials and labor to make the handbag.

• CRAFT-I earns a profit of 20% ETH.