Internal Benefit Policy for Tessera NFT Holders
Version 1.0
April 2025
Tessera Gallery
1. Introduction
1.1 Policy
This internal policy document outlines the discretionary payout structure for holders of non-fungible tokens (NFTs) from the Tessera NFT collections, minted on the XRP Ledger. Each NFT represents a unique, tokenized version of a digital artwork.
1.2 Collections
There are currently three collections minted or actively minting: Tessera, Tessera II, and Tessera Gallery. These collections are issued on the XRP Ledger by the following r-addresses:
Tessera issuer: rsEnnWEU9uAxajFFXGZ7SBcJc54FJSjdKZ
Tessera II issuer: r4HwGwMuRt3dV5ZLjnZ9jDnUnYm4XmSxT7
Tessera Gallery issuer: rUvUPU6CiCotpQQwcfHWXvaJxxZbRpEc6r
1.3 Intellectual Property
Each Tessera NFT represents a digital artwork created by the artist Vonkel. The copyright and all intellectual property rights to these artworks remain solely with the artist, regardless of NFT ownership. Holding an NFT does not confer any commercial rights or licenses to reproduce, distribute, or modify the artwork.
1.4 Holder’s Benefit
Each digital artwork may be sold as a physical print by Tessera Gallery. The current owner of the corresponding NFT may be eligible to receive Holder Benefits derived from the sale of that specific printed artwork. Decisions regarding whether any specific Tessera NFT is eligible for sale as a print are made solely at the discretion of Tessera Gallery.
1.5 Discretionary Payment
Ownership of an NFT does not convey any legal right to profits, earnings, or revenue. However, Tessera Gallery may voluntarily allocate discretionary payments to NFT holders as a gesture of appreciation for their support, involvement, or contribution to the community.
2. Payment Terms
2.1 Nature of Payment
The Holder Benefit is a non-binding, discretionary allocation made solely at the discretion of Tessera Gallery. It does not constitute a contractual obligation, nor does NFT ownership create any enforceable entitlement to payment.
2.2 Per-NFT Basis
Holder Benefits apply only to sales of physical prints that correspond to the specific digital artwork represented by the holder’s NFT. Holders are not eligible for benefits derived from print sales of other artworks they do not hold.
2.3 Basis for Calculation
Holder Benefits are calculated based on a percentage allocation of net revenue from print sales of the associated NFT, as conducted via Tessera Gallery’s official websites and sales channels. Net revenue is defined as the sales price excluding VAT, minus production costs and direct shipping costs. The percentage allocation reserved for Holder Benefits is determined solely at the discretion of Tessera Gallery and may be subject to change at any time.
2.4 Sales Information Disclosure
Tessera Gallery will strive to be transparent where reasonably feasible but is under no obligation to disclose detailed information regarding the number of prints sold, total revenue generated, or any other specific sales metrics.
3. Distribution Schedule
3.1 Frequency
Distributions are intended to occur on a monthly basis, though the schedule remains subject to change at the sole discretion of Tessera Gallery.
3.2 Holder Snapshot
A snapshot of NFT ownership will be taken at a random moment on the first day of each calendar month. This snapshot determines eligibility for Holder Benefits based on the print sales generated during the preceding calendar month. Only those who hold the relevant NFT at the time of the snapshot are eligible to receive the associated Holder Benefit. Ownership prior to or after the snapshot date does not entitle a holder to retroactive or partial payments.
3.3 Distribution
Distributions will be made in either XRP or RLUSD and will be sent directly to the wallet addresses holding the eligible NFTs at the time of the snapshot.
4. Wallet Identification and KYC Policy
4.1 Identification
Distributions are made based on publicly verifiable wallet addresses on the XRP Ledger. The holder of an NFT is determined by the wallet address in possession of the NFT at the time of the snapshot.
4.2 KYC Requirements
Tessera Gallery does not require Know Your Customer (KYC) procedures for NFT holders receiving Holder Benefits. However, it is the responsibility of the recipient to comply with any relevant tax obligations in their jurisdiction.
4.3 Address Confirmation Requirement
To receive Holder Benefit payments, NFT holders must explicitly confirm their wallet address through the process designated by Tessera Gallery. This confirmation ensures that recipients are aware of the payment and take custody of any tax-related responsibilities in their local jurisdiction. Distributions will not be made to unconfirmed addresses. Any Holder Benefits associated with unconfirmed wallets will be redirected to the Tessera Treasury, where they may be allocated toward community initiatives and promotional activities.
5. Accounting and Tax Considerations
5.1 Accounting Treatment
Discretionary payments are recorded by Tessera Gallery as business expenses under the account heading: NFT Reward Costs.
5.2 VAT and Tax
No VAT is applied or reclaimed on these discretionary payouts. Recipients are independently responsible for any tax declarations or obligations within their own jurisdiction.
5.3 No Withholding
No tax is withheld at the source by Tessera Gallery.
6. Rights and Disclaimers
6.1 Reservation of Rights
Tessera Gallery reserves the right to modify, suspend, or terminate the holder benefit distribution structure at any time, without prior notice.
6.2 No Legal Entitlement
This policy does not constitute a binding agreement or legal entitlement. Participation in the Tessera holder ecosystem implies acceptance of this discretionary model.
7. Final Provisions
This document serves as an internal reference for administrative purposes. It may be shared with tax consultants, accountants, or legal advisors as needed.
Prepared by:
Vonkel
Tessera Gallery