📌 NFT Royalties Summary
NFT royalties are payments set up so that the original creator of a digital asset, like artwork or music, receives a percentage each time the NFT is resold. These royalties are coded into the NFT’s smart contract, which automatically sends the agreed percentage to the creator whenever a sale happens on compatible marketplaces. This system helps artists and creators earn ongoing income from their work, not just from the first sale.
🙋🏻♂️ Explain NFT Royalties Simply
Think of NFT royalties like a musician earning money every time their song is played on the radio, not just when it first comes out. If you make a digital painting as an NFT and someone sells it to another person later, you get a small cut of that sale automatically. It is a way for creators to keep benefiting from their work as it changes hands.
📅 How Can it be used?
A digital art platform can use NFT royalties to ensure artists are paid a percentage each time their artwork is resold.
🗺️ Real World Examples
An artist mints a digital painting as an NFT and sets a 10 percent royalty. After the initial sale, the painting is resold multiple times on NFT marketplaces. Each time the NFT changes owners, the smart contract ensures 10 percent of the resale price goes directly to the artist, providing them with continuous income from their creation.
A music producer releases a track as an NFT with a royalty clause. When fans or collectors trade the music NFT, the producer receives a percentage of each sale automatically, allowing them to benefit financially as the track becomes more popular and is traded among collectors.
✅ FAQ
How do NFT royalties work for artists and creators?
NFT royalties make it possible for artists and creators to keep earning money every time their digital work changes hands. When an NFT is resold, a set percentage goes straight to the original creator, thanks to the rules written into the NFT’s smart contract. This means creators can benefit from the future success of their work, not just the first sale.
Do all NFT marketplaces support royalties for creators?
Not every marketplace honours NFT royalties. Some platforms automatically send the royalty payment to the creator when a sale happens, while others might not support this feature at all. It is important for creators to check how a marketplace handles royalties before selling their work there.
Can the creator change the royalty percentage after the NFT is sold?
Once the royalty percentage is set in the NFT’s smart contract, it usually cannot be changed for that particular NFT. This helps keep things fair for both the creator and future buyers, as everyone knows what to expect from each sale.
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