NFT Royalties: An Overview and How They Function
NFT royalties offer digital creators the opportunity to earn ongoing income from their work, rather than just a one-time payment like traditional art sales. With NFT royalties, artists receive a small percentage each time their work is resold.
Imagine selling a piece of digital art and then earning money every time it is sold again – that’s the power of NFT royalties. However, there are complexities to how these royalties function. How do they work exactly? Are they consistent? Here’s a comprehensive look at the advantages, mechanics, and challenges associated with NFT royalties.
Key Takeaways:
NFT royalties enable creators to earn a fixed percentage (around 10% typically) from each resale of their digital assets.These royalties are implemented through smart contracts on the blockchain, automating payments and eliminating the need for middlemen.Certain NFT marketplaces like Magic Eden allow buyers to choose whether to pay royalties, affecting creators’ earnings.
