NFT Royalties Explained: How Creators Earn from Secondary Sales
A Guide to Compensating Creators on Secondary Sales This guide will help you understand the concept of NFT royalties. It describes how royalty percentage rates are established, enforced by marketplace operators, and, as of late, challenged as marketplaces provide options for sellers to opt out. You will also learn about the role of smart contracts in enforcing royalties on-chain, as well as the use of the ERC-2981 standard. Finally, you will find out about the different royalty models used across various blockchains and marketplaces, and how those differences can affect creators, projects, and investors. This guide is designed to provide clarification regarding the economic aspects of royalties associated with NFTs, regardless of whether you are creating (minting) NFTs or purchasing them. Additionally, it provides insight into the changing trends within the NFT market that are creating new challenges and opportunities for creators and collectors alike.
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