> For the complete documentation index, see [llms.txt](https://craft-i.gitbook.io/white-paper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://craft-i.gitbook.io/white-paper/business-related-info/framework.md).

# Framework

<figure><img src="/files/EiLoSImIgBIHylIOIVhv" alt=""><figcaption><p>CRAFT-I's Framework</p></figcaption></figure>

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

1. A MSME 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 MSMEs to make the tangible products.
5. The MSMEs sells the product to a customer.

## Profits

**Profit for the MSMEs:**

* The MSMEs earn a royalty on each NFT sale.
* The MSMEs 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 MSMEs 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 MSMEs and 20% to itself.
* The MSMEs then use the 80% ETH to purchase the materials and labor to make the handbag.
* **CRAFT-I** earns a profit of 20% ETH.&#x20;