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I want to make a fungible token (FT) that has a royalty attached (N%). The problem is UTxOs are purely passive so how can I get my N% of the transaction value on P2P transactions using code is law.

To clarify how do I ensure (using code) that every time my token is moved between people I get a cut.

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This is not possible. Native Tokens are first class citizens on Cardano. They are not part of a smart contract that could enforce behavior like this but are assets in your wallet like ADA.

It's the same for NFTs, no one prevents you from sending a Cardano NFT directly to another wallet without paying the royalties that would apply on a marketplace.

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  • To add to that, key witnessed address determines how the native assets located at that address are spend. So to enforce this you need to create "shared" pensioned address with a plutus script. Now the problem with this is that a wallet does not index this. This is something that we as a community have to solve with standards. An ECR20 contract does something similar, you have to import it into a wallet to keep track of funds. So it is possible but you have to invent the wheel.
    – Fermat
    Jun 17, 2022 at 11:17

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