How To Use Splits on 1stDibs
1stDibs is using 0xSplits, a secure, open-source protocol, to process and distribute funds. Whenever a Split receives income, each recipient gets their share of those funds. You can set a Split as the recipient of the sale of an NFT, but you can also set a Split as the recipient of the royalties of a secondary sale too! And those Splits can be different. For example, you can set yourself and your collaborator as the recipients of royalties while making a curator plus yourself and your collaborator recipients of the primary sale.
You can use a Split to share funds between collaborators, with a curator, or with charity. Literally any wallet account (and smart contracts) can be used as the recipient of a Split. The way you share funds is completely up to you.
Note: you are not required to use a Split. If you don’t add a Split then funds for both primary and secondary sales will continue to flow to you.
Creating a Split
The first step to using a Split on 1stDibs is to create a Split.
To do this, first go to your wallet page on 1stDibs. Find the Splits section and click Create New.
This will open the Create New Split dialog box. You then add each recipient and their corresponding share. A recipient can be any payable Ethereum address: user wallets, smart contracts, and other Splits are all valid recipients. ENS names are supported. Make sure ownership adds to 100%, click Create Split, approve the transaction, and you’re done. It’s also recommended that you name the Split. The name is visible only to you on 1stDibs.
You should also consider the distributor fee (in advanced settings) when you create a Split. By default, it’s set to 0.5%, but you may set it to 0% if you plan on always distributing the funds yourself.
It’s important to read the 0xSplits documentation concerning the distributor fee and other advanced settings before you create your first Split. Setting a distributor fee (under advanced settings) encourages bots (or anyone) to automatically distribute your funds, saving you a step later. A 1% distributor fee is recommended to encourage quick payouts.
Using a Split
There are two places where you may add a Split on 1stDibs:
- minting (Create NFT page), where you set a royalty mint
- listing (Create Auction page), where you set the Split for the current listing (both primary and secondary sales)
In each case, whether minting a new NFT or listing one for sale, you’ll see an option to add a Split.
Minting – Royalty Split
When minting an NFT on 1stDibs you may add a Split to be used for royalties that are paid out on secondary sales.
On the Create NFT page, click Add Split
In the resulting dialog box, you’ll see all the Splits where your wallet is a recipient. Select the Split you’d like to use and click Use This Split. You also have the option to create a new Split.
You will then see that the Split has been added to your draft NFT. When you mint, the Split address will be added to the token. You can edit or remove the Split prior to minting. Clicking View Details will show you the recipients with their share of the Split.
When you mint a token with a royalty Split, any marketplace that follows the EIP-2981 NFT Royalty Standard will pay royalties to the Split address on secondary sales. It’s important to keep in mind that this Split is only used for royalties. It’s for future sales after the primary (or first) sale.
Listing – Sale Split
Adding a Split to an auction is identical to adding a royalty Split. On the Create Auction page, click the Add Split button, choose the Split you’d like to use in the resulting dialog box, and then click Add Split again.
When creating a sale, you’ll see a breakdown of how funds will be distributed. For a primary sale, this comprises the main sale amount and the 1stDibs 5% commission. When you enter the price, you will see near the bottom of the form the You Will Receive amount. This is the amount that you will personally net from the sale. For example, if you enter 1 ETH, you will receive .95 ETH, which reflects the 1stDibs commission fee being subtracted from the principal.
When you add a Split, the You Will Receive amount will reflect your share of the Split. For example, if you set the price to 1 ETH and then add a Split where you’re receiving 50% of the funds, then you will receive .475 ETH. It’s important to remember that if you have a distributor fee set on the Split, that fee will go to whomever distributes the Split so your actual net proceeds may be a bit smaller (or a bit higher if you initiate the distribution) depending upon the fee amount.
Once you create the auction for the NFT, you will see the Split on the NFT details page.
Note: when creating a primary sale you will not see an indication of the royalty Split because royalties are not paid on primary sales.
Withdrawing Funds From a Split
After a sale, you’ll want to withdraw your proceeds from the sale. If the funds from the sale went to a Split, you’ll see them reflected on your 1stDibs wallet page.
Withdrawing funds may be a two step process. If you haven’t set a distributor fee, then first, you’ll need to distribute the entire amount (note that other recipients on the Split — or anyone — may distribute funds to the Split recipients). After the distribution, you may withdraw your share of the funds to your wallet. If you’ve set a distributor fee, it’s possible that a bot or anyone may have distributed the Split for you.
If this is your first sale, then there will be no available balances under Individual Sales and Split Sales. You will see the entire proceeds available in the Split under For Distribution. This means that you have funds available for distribution. Once they’re distributed, then you may withdraw them. See the 0xSplits documentation regarding the hows and whys of distributions.
To distribute the funds, scroll lower down on the page to your Splits. If any Splits have funds available for distribution, the balance will be listed with the Split. If you’ve just completed a successful sale, which paid out to a Split, you should see funds available to be distributed. Select either the distribute link or Distribute Funds in the fly-out menu to distribute the funds for withdrawal.
This will open the Distribute Balance dialog box. Click Distribute Funds and accept the transaction in your wallet.
Now, you may withdraw your portion of the Split proceeds. You may need to refresh the 1stDibs wallet page in order for the balances to update. Once you see your balance under Split Sales, click the withdraw link and accept the transaction in your wallet to receive your funds.
And that’s it! You should have your funds in your wallet.
The team behind 0xSplits has a very good documentation that you are encouraged to read. It’s also important to note that Splits created on 1stDibs may be used on many other sites and marketplaces. They may also be managed via the 0xSplits front-end, which can be found at https://app.0xsplits.xyz/.