Definition
An NFT royalty commonly refers to a creator payment linked to secondary sales. The amount can be expressed as a percentage of the sale price or follow another defined rule. Creator royalties are separate from marketplace fees and from the rights a buyer receives in the associated work.
How It Works
A token contract or marketplace can expose the intended recipient and amount. ERC-2981, for example, standardizes how royalty information is requested, but does not itself force every transfer or marketplace to pay. Collection restrictions, marketplace policies and other arrangements influence whether a payment is actually collected.
Key Considerations
A displayed royalty rate is not a universal guarantee of future income. Private transfers and unsupported trading routes can receive different treatment. Legal licensing obligations and technical collection mechanisms must also be distinguished. A creator should assess the actual enforcement and payment route, while buyers should understand the total cost. Neither minting an NFT nor programming a recipient automatically establishes ownership of copyright.