Hello and welcome to our in-depth exploration of NFT royalties. In recent years, NFTs have taken the art world by storm, transforming the way we think about ownership and value. But what exactly are NFT royalties, and how do they work? In this article, we’ll delve into the intricacies of NFT royalties, exploring their potential impact on the art world and beyond.

What are NFT royalties?

At their most basic level, NFT royalties are a form of payment that artists receive each time their NFT is resold. This is in contrast to traditional art sales, where artists typically only receive payment once, at the time of the initial sale. With NFT royalties, artists can continue to benefit financially from the ongoing popularity and value of their work.

But how exactly do NFT royalties work? Essentially, when an NFT is sold on a secondary market, a portion of the sale price is automatically paid out to the original artist. This percentage can vary depending on the platform and the artist’s agreements with the platform, but typically ranges from 5-10%.

NFT royalties are a relatively new concept, but they have already started to gain traction in the art world. As more and more artists turn to NFTs as a way to monetize their work, the importance of NFT royalties is only set to grow.

How do NFT royalties benefit artists?

There are several key benefits to NFT royalties for artists:

  • Additional revenue streams: By receiving a portion of each resale, artists can continue to earn money from their work long after the initial sale.
  • Fair compensation: With traditional art sales, it’s not uncommon for artists to see their work sell for exponentially higher prices on the secondary market without receiving any additional compensation. NFT royalties help to ensure that artists are fairly compensated for the ongoing value of their work.
  • Increased control: By receiving ongoing payments for each resale, artists can maintain more control over the distribution and use of their work.

What are the potential downsides of NFT royalties?

While NFT royalties offer many benefits to artists, there are also potential downsides to consider. One concern is that NFT royalties could lead to a reduction in the overall resale value of NFTs. If buyers know that a portion of their purchase will go to the original artist, they may be less willing to pay high prices for NFTs on the secondary market.

Another concern is that NFT royalties could lead to increased fragmentation in the art market. If each artist has their own unique royalty agreement, it could become difficult for buyers and sellers to keep track of who is owed what.

How are NFT royalties calculated?

The exact calculation of NFT royalties can vary depending on the platform and the specific artist agreement. However, a common royalty structure is a percentage of the total sale price, typically ranging from 5-10%. For example, if an NFT sells for $100,000 on the secondary market and the artist has a 10% royalty agreement, they would receive $10,000 in royalties.

It’s worth noting that some platforms may also charge additional fees or take a percentage of the royalty payment for themselves. Artists should carefully review their agreements with each platform to understand the exact terms of their royalty payments.

How are NFT royalties tracked?

Tracking NFT royalties can be a complex process, especially as more and more artists and platforms enter the market. However, some platforms are starting to develop systems for tracking and distributing royalties automatically.

For example, the platform SuperRare uses a smart contract system to automatically distribute royalties to artists each time their work is resold. Other platforms may require artists to manually track their own royalties and submit payment requests to the platform.

What impact could NFT royalties have on the art world?

The introduction of NFT royalties has the potential to greatly impact the art world, both in terms of how artists create and monetize their work, and how buyers and collectors perceive the value of art.

One potential benefit of NFT royalties is that they could help to democratize the art world. By allowing artists to receive ongoing payments for their work, NFTs may make it easier for emerging artists to make a living from their art. Additionally, NFT royalties could help to incentivize artists to create more diverse and experimental work, as they are no longer solely reliant on the initial sale of their work for income.

On the other hand, some critics have raised concerns that NFTs and NFT royalties could contribute to the commodification of art. By placing a monetary value on digital works of art, some worry that we are reducing art to a purely financial transaction, rather than valuing it for its cultural and artistic significance.

What does the future hold for NFT royalties?

As with any emerging technology, it’s difficult to predict exactly how NFT royalties will evolve in the coming years. However, it’s clear that NFTs and NFT royalties are already starting to transform the way we think about art and ownership.

As more and more artists and collectors adopt NFTs, we can expect to see new platforms and technologies emerge to support this growing market. Additionally, as the concept of NFT royalties becomes more widely accepted, we may see more standardized royalty agreements and tracking systems emerge.


Overall, NFT royalties represent an exciting new frontier in the world of art and ownership. By allowing artists to receive ongoing payments for their work, NFTs have the potential to greatly benefit artists and democratize the art world. However, as with any new technology, it’s important to carefully consider the potential downsides and keep a critical eye on how NFTs and NFT royalties are shaping the art market.


Question Answer
What does NFT stand for? NFT stands for non-fungible token.
What is an NFT? An NFT is a digital asset that represents ownership of a unique piece of content, such as a work of art or a tweet.
How do you buy an NFT? NFTs can be purchased on various online platforms that specialize in NFTs.
What is a smart contract? A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
What are the benefits of NFT royalties? NFT royalties can provide artists with additional revenue streams, fair compensation, and increased control over the distribution of their work.
What are the potential downsides of NFT royalties? NFT royalties could lead to a reduction in the overall resale value of NFTs and increased fragmentation in the art market.

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