NFT Royalties: How Creators Get Paid Forever
One of the biggest innovations of NFTs is Royalties. Artists can code a commission (e.g., 5%) into the smart contract, ensuring they get paid every time the NFT is resold.
How it Works
- Artist mints NFT with 5% royalty.
- Collector A buys it for 1 ETH.
- Collector A sells it to Collector B for 10 ETH.
- Artist automatically receives 0.5 ETH (5% of 10 ETH).
The Controversy
Some new marketplaces have made royalties optional to attract traders. This has sparked a debate about protecting creator income.
Calculate potential royalty revenue streams with the NFT Royalty Calculator.