NFT Royalties
Plain English
Ongoing payments to original creators every time their NFT is resold. If an artist sets 5% royalties, they earn 5% of every future sale automatically. This gives creators ongoing income from their work, unlike traditional art sales.
Technical
On-chain enforcement mechanism ensuring original creators receive percentage-based compensation from secondary sales. Solana’s Token Metadata program enables creators to set royalty percentages and recipient addresses. However, royalty enforcement depends on marketplace cooperation - some platforms allow royalty circumvention, leading to ongoing debates about creator compensation sustainability.