On-Chain Royalty Flows

Definition ∞ On-chain royalty flows describe the automated distribution of royalty payments directly recorded and processed on a blockchain ledger. These flows are typically managed by smart contracts, which execute predefined payment rules and ensure transparent, immutable record-keeping of transactions. This system eliminates the need for intermediaries in royalty collection and distribution.
Context ∞ On-chain royalty flows are a significant development in the tokenization of intellectual property, particularly for digital collectibles and music catalog assets. News often discusses their application in NFT markets, where creators receive a percentage of secondary sales directly through smart contract execution. This technology promises greater transparency and efficiency for creators in managing their earnings within the digital economy.