Kindle Worlds: Amazon licensed fan fiction

So I just read this press release from Amazon and thought they are up to something pretty neat. Licensing worlds from their creators and allowing fan fiction writers to monetize them, with everyone making a little, sounds like a really cool idea.

Amazon Publishing will pay royalties to both the rights holders of the Worlds and the author. The standard author’s royalty rate (for works of at least 10,000 words) will be 35% of net revenue. Amazon Publishing will also pilot an experimental new program for particularly short works—between 5,000 and 10,000 words. For these short stories—typically priced under one dollar—Amazon will pay the royalties for the World’s rights holder and pay authors a digital royalty of 20%.