✅ Master NFT Royalty Mechanics
Understand EIP-2981, enforcement challenges, and creator earnings
Understand how creators earn from secondary sales
Your Progress
0 / 5 completed🎓 Key Takeaways: NFT Royalties
What you've learned about NFT royalties:
How Royalties Work
Creators earn percentage of every resale. Royalties compound over time—a successful NFT can generate 10x the original sale price in royalties alone.
EIP-2981 Standard
One simple function—royaltyInfo()—that returns payment address and amount. Adopted by all major marketplaces as the universal standard.
Enforcement Challenges
EIP-2981 cannot enforce payments—it only communicates terms. Marketplace competition led to optional royalties becoming the norm in 2023.
Creator Solutions
On-chain enforcement via operator filters, or alternative models like staking rewards and membership benefits that don't rely on resales.
🎯 Core Principles
Technical standards ≠ business enforcement: EIP-2981 works perfectly but cannot force marketplaces to pay.
Volume vs. Revenue tradeoff: Enforced royalties reduce trading volume by 30-50%. Lower optional rates often generate more total revenue.
Market dynamics evolve: What worked in 2021 (10% enforced) doesn't work in 2023 (2.5% optional). Stay flexible.
Community matters: Premium art communities pay 60-80% of optional royalties. Mass-market PFPs see 20-40%. Choose your audience.
Test Your Knowledge
Ready to test your understanding? Take the scenario-based quiz to see how well you grasp NFT royalty dynamics in real-world situations.