NFT royalties are a form of passive income that creators can earn from their digital artworks. When an NFT is initially sold, the creator typically receives a portion of the proceeds, known as the primary sale. However, NFT royalties go a step further by allowing creators to earn a percentage of the proceeds from every subsequent resale of their NFT.

This is made possible through the use of smart contracts, which are self-executing contracts stored on the blockchain. When an NFT is resold, the smart contract automatically calculates the royalty fee and distributes it to the original creator. This ensures that creators continue to benefit from their work even after they have sold it.

The percentage of royalties that creators earn can vary depending on the marketplace and the specific NFT. However, it is typically between 5% and 10%. This can provide a significant stream of income for creators, especially those who have created popular or in-demand NFTs.

NFT royalties are a relatively new concept, and they are still evolving. However, they have the potential to revolutionize the way that creators are compensated for their work. By providing a new source of income, NFT royalties can help to ensure that creators are fairly rewarded for their creativity and innovation.

Benefits of NFT Royalties for Creators

Passive income: NFT royalties provide a stream of passive income for creators, meaning that they can earn money without having to actively do anything.

Fairer compensation: NFT royalties help to ensure that creators are fairly compensated for their work, even after they have sold their NFTs.

Greater control: NFT royalties give creators more control over how their work is used and monetized.

NFT royalties are a valuable tool for creators, and they have the potential to reshape the creative economy. As the NFT market continues to grow, we can expect to see NFT royalties become even more important.