NFT royalties are a feature that can let the original creator of an NFT earn a percentage each time it is resold by others. For example, a creator might set a royalty so they receive a small share of every future sale, not just the first one.
This idea appealed to many creators, since traditional art sales rarely give the original artist anything on later resales. Royalties are usually defined when an NFT is created and are meant to be paid automatically on secondary sales through marketplaces.
In practice, royalty enforcement has become complicated. Because of how blockchains and marketplaces work, honouring royalties has often become optional rather than guaranteed, and different platforms handle it differently. This entry explains the concept and is educational, not a suggestion to create or trade NFTs.
Frequently Asked Questions
How do NFT royalties work?
A creator can set a royalty percentage when an NFT is made, so they receive a share of future resales. These are meant to be paid automatically on secondary sales.
Are NFT royalties always paid?
Not necessarily. Enforcing royalties has become complicated, and on many platforms honouring them has become optional rather than guaranteed, varying from one marketplace to another.
