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NFT royalties

A percentage of each secondary sale directed to the original creator, enforced by marketplace policy rather than by the chain itself.

Royalties are typically 2.5% to 10%, set by the project. Crucially, the erc-721 standard cannot enforce payment on a plain transfer, so they depend on marketplaces choosing to honour them.

That dependence collapsed when zero-royalty marketplaces gained share, cutting creator revenue sharply and changing the economics many projects were built on. Some projects responded with transfer restrictions, which reduce fungibility across venues.

Example: selling at 5 ETH with a 7.5% royalty and 2% marketplace fee nets 4.525 ETH. On a zero-royalty venue the same sale nets 4.9 ETH, which is why sellers migrated and why quoted floors across marketplaces can differ.

Related: nft, nft-floor-price, erc-721, wash-trading-crypto

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