What are NFT royalties?

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Kitty Mayo
Product Lead (Growth)

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NFT creator royalties are payments made to the creator of the NFT on each sale of that NFT. Similar to royalties outside of the web3 world, NFT royalties are paid as a percentage of the sale price of the NFT being sold. This means the creator of the NFT receives royalties not just on the first sale but on all subsequent sales of that NFT, and this payment occurs automatically through smart contract technology on the blockchain. The typical NFT royalty is set between 5-10% although platforms can have a different maximum percentage that’s allowed. NFT royalties open an additional revenue source for content creators, who can benefit from secondary sales of their NFTs in perpetuity.