Roblox's UGC Program Gives Creators the Power to Create Limited Digital Items Called Limiteds
Roblox is empowering creators in its UGC Program with the ability to create Limiteds, which are exclusive digital creations available in limited quantities. These Limiteds can be resold, with creators receiving a 10% payout each time an item is resold, in addition to their earnings from the initial creation and sale.
To publish a Limited, creators are required to pay an upfront fee based on the quality and type of asset. When the item is sold, the creator receives a proportionate refund of the upfront payment based on the number of items sold.
There are guidelines in place for Limiteds, such as not creating duplicates of existing items or republishing items as Limiteds. Violating these guidelines results in the upfront payment not being refunded, and the creator/item being removed from the Program and Marketplace.
As per Roblox, here is how Limiteds work:
A creator intends to sell 200 Limited hats at 100 Robux each.
The creator first pays an upfront payment based on factors like quantity and asset type. In our hypothetical case, the upfront payment that is due before publishing is 4,000 Robux or 20 Robux per item.
When the item is purchased, the creator makes 50 Robux per sale: 30 Robux from the usual 30% commission for creators, plus 20 Robux from the portion of the upfront payment that is returned.
30 Robux (commission per item) = 100 Robux per item X 30% commission
20 Robux (upfront payment per item) = 4,000 Robux upfront payment / 200 Limited hats
Limiteds share similarities with non-fungible tokens (NFTs) in terms of scarcity and royalty earnings for creators. However, Limiteds are not connected to the blockchain like NFTs. By requiring an upfront fee, Roblox addresses some of the concerns seen with NFTs, such as flooding marketplaces with unsold items without financial responsibility. This approach combines the benefits of NFTs with guardrails to benefit creators, buyers, and sellers within Roblox's ecosystem.
