Imagine you sell a painting today for £500. A few years later, the collector sells that same painting for £10,000. In the traditional art world, the artist often receives nothing from that second sale. NFT royalties were designed to help change that.
What Is an NFT Royalty?
An NFT royalty is a percentage of a future resale that may be paid to the original artist. A standing instruction attached to the artwork: *"If this artwork is sold again, send a small percentage back to the artist."*
A Simple Example
You mint an NFT and sell it for £500. Two years later, the collector resells it for £5,000. With a 10% royalty, the original artist receives £500 automatically.
Are Royalties Guaranteed?
Not every marketplace handles royalties the same way. Some fully support creator royalties, some partially, others may not enforce them in every situation. Royalties should be viewed as a valuable feature rather than a guaranteed source of future income.
Why Artists Like NFT Royalties
For centuries, artists have watched their works increase in value without sharing in later sales. NFT royalties introduced a new possibility: artists may continue to benefit from growing collector demand, increasing market value, and future resales of their work.
