Revenue Model

How the Network Generates Revenue

Nonterritorial generates revenue through a single, transparent mechanism: exhibition licensing.

When a host wants to display an exhibition, they pay a license fee. That fee is the network's only revenue source. No platform fees. No subscriptions. No advertising. No data monetization.

This simplicity is intentional. Complex revenue models create misaligned incentives. Our model ensures the network only succeeds when exhibitions circulate and artists earn.

The License Fee

What Hosts Pay

Every license fee includes:

• Rights to display the exhibition for a specified period

• Exhibition files and documentation

• Technical support

• Promotional materials

• Verification and quality assurance

Fees vary based on:

Factor	Impact
Exhibition	More complex/prestigious exhibitions cost more
Duration	Longer licenses cost more
Venue type	Commercial venues pay more than non-profits
Geography	Adjusted for local economic conditions

Typical Fee Ranges

Venue Type	Short (1-4 weeks)	Standard (1-3 months)	Extended (6 months)
Small café/community	€300-800	€500-1,500	€900-2,500
University/school	€600-1,500	€1,500-3,500	€2,500-6,000
Corporate space	€1,500-4,000	€3,000-7,500	€5,000-12,000
Cultural institution	€2,500-8,000	€5,000-15,000	€8,000-25,000

These are illustrative ranges. Actual fees depend on specific exhibitions and circumstances.

Revenue Distribution

The Split

Every license fee is distributed automatically via smart contract:

┌─────────────────────────────────────────────────────────┐
│                    LICENSE FEE                          │
│                      €3,000                             │
└─────────────────────────────────────────────────────────┘
                          │
        ┌─────────────────┼─────────────────┐
        │                 │                 │
        ▼                 ▼                 ▼
┌───────────────┐ ┌───────────────┐ ┌───────────────┐
│    ARTIST     │ │    CURATOR    │ │    RIGHTS     │
│     40%       │ │     20%       │ │   HOLDERS     │
│   €1,200      │ │    €600       │ │     15%       │
│   (instant)   │ │   (instant)   │ │    €450       │
└───────────────┘ └───────────────┘ └───────────────┘
                          │
        ┌─────────────────┼─────────────────┐
        │                 │                 │
        ▼                 ▼                 ▼
┌───────────────┐ ┌───────────────┐
│  OPERATIONS   │ │ COMMISSIONING │
│     15%       │ │    FUND       │
│    €450       │ │     10%       │
│               │ │    €300       │
└───────────────┘ └───────────────┘

Distribution Breakdown

Recipient	Percentage	Purpose	Payment Timing
Artist	40%	Creator compensation	Instant
Curator	20%	Curatorial work and exhibition development	Instant
Rights Holders	15%	Original content rights (music, footage, etc.)	Instant
Operations	15%	Network infrastructure and support	Retained
Commissioning Fund	10%	Creating new exhibitions	Retained

Why This Split?

40% to Artists

The network exists to serve artists. 40% is dramatically higher than traditional models:

• Galleries: 50% commission (artist keeps 50%)

• Streaming: Fractions of cents per view

• NFT royalties: 5-10% on resales that may never happen

Artists receive 40% of gross—no deductions, no delays.

20% to Curators

Curation creates value. Selecting, sequencing, and contextualizing work transforms individual pieces into coherent exhibitions. Curators deserve meaningful compensation.

15% to Rights Holders

Many exhibitions include licensed content—music, archival footage, collaborative elements. These rights holders receive automatic payment.

15% to Operations

Running the network costs money:

• Technical infrastructure (servers, blockchain fees, storage)

• Platform development and maintenance

• Support staff

• Security audits and monitoring

• Legal and compliance

This is not profit—it's operational sustainability. The Foundation operates as non-profit.

10% to Commissioning

The engine of perpetual growth. Every license contributes to funding new exhibitions. See Commissioning Fund for details.

Revenue Projections

Conservative Growth Scenario

Year	Exhibitions	Avg Licenses/Exhibition	Avg Fee	Total Revenue
1	20	8	€2,500	€400,000
2	50	12	€2,800	€1,680,000
3	100	15	€3,200	€4,800,000
4	200	18	€3,500	€12,600,000
5	350	20	€3,800	€26,600,000

Base Case Scenario

Year	Exhibitions	Avg Licenses/Exhibition	Avg Fee	Total Revenue
1	25	10	€2,500	€625,000
2	75	15	€3,000	€3,375,000
3	150	18	€3,500	€9,450,000
4	300	22	€4,000	€26,400,000
5	500	25	€4,200	€52,500,000

Revenue Distribution at Scale (Year 5, Base Case)

Recipient	Percentage	Annual Amount
Artists	40%	€21,000,000
Curators	20%	€10,500,000
Rights Holders	15%	€7,875,000
Operations	15%	€7,875,000
Commissioning	10%	€5,250,000

€21 million flowing directly to artists annually. This is what sustainable cultural infrastructure looks like.

Comparison to Other Models

vs. Traditional Gallery

Metric	Gallery	Nonterritorial
Artist share	50% of sale	40% of every license
Payment frequency	Per sale (infrequent)	Per license (ongoing)
Geographic reach	Gallery location	Global
Audience	Buyers	Everyone
Work circulation	Often to storage	Continuous exhibition

vs. NFT Platforms

Metric	NFT Platform	Nonterritorial
Artist share	90%+ on primary, 5-10% royalty	40% on every license
Revenue basis	Sales + speculation	Actual use
Sustainability	Dependent on market hype	Built into model
Audience experience	Digital ownership	Physical exhibition

vs. Streaming Platforms

Metric	Art Streaming	Nonterritorial
Artist share	Fractions of cents	40% of license fees
Payment per view	~€0.001-0.01	€800-6,000 per license
Experience	Distracted, private screen	Dedicated exhibition space
Curation	Algorithmic	Human

Key Principles

No Hidden Fees

The license fee is the total cost. No platform fees. No transaction fees. No subscription requirements.

Instant Payment

Artists, curators, and rights holders receive payment the moment the license is purchased. Smart contracts execute automatically.

Transparent Allocation

Every payment is recorded on-chain. Anyone can verify that funds flow as promised.

Aligned Incentives

The network only generates revenue when exhibitions circulate. Our success depends on artist success.