The term references a revenue-sharing model prevalent in digital marketplaces where applications are distributed. Specifically, it designates the percentage of revenue generated from application sales and in-app purchases that is retained by the platform owner. For example, if an application generates $100 in revenue on a particular app store, and the platform retains 30%, the developer receives $70. This retained percentage is the core concept being addressed.
This mechanism is critical to the operation and economic viability of application ecosystems. The funds generated support the infrastructure required to host, deliver, and promote applications to a global audience. This infrastructure includes server maintenance, security measures, and the provision of developer tools and resources. Historically, such arrangements have been essential in fostering innovation and providing a centralized, trusted environment for both developers and users.