Creator royalties refer to a percentage of secondary sales that the original creator of a digital asset, such as an NFT, receives each time their asset is resold. This mechanism is typically programmed directly into the smart contract governing the digital asset. It provides a continuous revenue stream for artists and developers beyond the initial sale. This system aligns incentives, allowing creators to benefit from the long-term value appreciation of their work.
Context
The topic of creator royalties is a significant point of discussion in the NFT market, especially regarding platform enforcement and varying fee structures. A key debate involves the optionality of these royalties, with some marketplaces allowing buyers to opt out, impacting creator compensation. Future developments may include standardized on-chain enforcement mechanisms or new protocol designs that ensure consistent royalty collection across all secondary markets. This aims to protect creators’ ongoing financial interests.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
