The NFT-Royalty Story

Over 1.8 Billion USD have been paid in royalties to creators. Here's how that works

According to a galaxy.com report the royalties creators embed in the NFT smart-contracts have risen from an average 3 to 6& over the past years.

Across 482 collections (+100K ETH Traded) account over 80% of all Ethereum royalties. And the top 10 collections sum about 27% of the total.

How does the royalties model work?

Royalties are paid by sellers, not buyers. Usually, The Royalty is embedded within the collection’s Smart-Contract. The creator connect’s it’s wallet with the collection.

Why does it work?

Royalties generate revenue from streams that haven’t been exhausted by art industries before. NFT’s provide a way for both collectors and creators to make money.

From a collector point of view, an NFT has a market price which fluctuates and can be appraised, such as a Currency or Art. And they bring together communities and fandoms with their favorite artist’s.

From a creator’s point of view, this generates a way to gain benefits from creations each time they are sold.

If you think about CDs competition with Streaming it’s a non-brainer to return a collectible scarce piece with it’s “originality” and “uniqueness” and combine it with all the technological changes.