What are NFT Art Royalties?
NFT art royalties refer to the automatic payment system that allows artists to earn a percentage of sales each time their artwork is resold in secondary markets. This feature is embedded within the smart contracts of Non-Fungible Tokens (NFTs), ensuring that original creators receive ongoing compensation for their work.
How Do Royalties Work?
The royalty structure is outlined in the smart contract at the time of the NFT's creation. Common royalty percentages range from 5% to 10%, but this can vary depending on the platform and the artist's preferences. When a subsequent sale occurs, the specified royalty percentage is automatically deducted from the sale price and transferred to the artist's wallet.
Importance of Royalties
NFT art royalties are crucial for creators as they provide a sustainable income source, allowing artists to benefit financially from their work long after the initial sale. This model contrasts with traditional art markets, where artists typically do not receive any compensation from future sales.
Platforms Supporting Royalties
Many NFT marketplaces, such as OpenSea and Rarible, support royalty features, encouraging artists to mint their works on these platforms. Creative communities benefit from this structure, fostering a more equitable system within the digital art landscape.