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Royalties

Immutable's ecosystem enforces the payment of royalty fees to content creators when assets are bought and sold. Royalty fees are set during the minting process by a collection' smart contract.


What are Web3 NFT royalties?

blockchain minting api asset relationships

In the secondary market (after the NFT has been minted to its initial owner), when an NFT is sold or traded, a portion of the transaction value is automatically set as a royalty fee, which is then directed to the original creator.

At Immutable, this royalty fee enforcement is achieved using smart contracts. The NFT's smart contract includes provisions that precisely calculate and distribute the royalty fees to the creator or rights holder every time the NFT is resold.

Settlement

Why does Immutable enforce royalty fees?

At Immutable, we are committed to nurturing a thriving Web3 gaming ecosystem, and an essential aspect of this ecosystem is the availability of high-quality content.

Royalty fees play a vital role in ensuring that artists and creators continue to benefit from the value generated by their creations, even after the initial sale. By receiving a percentage of subsequent sales, creators are incentivized and rewarded for their invaluable contributions, talent, and creativity. This practice mirrors the well-established concept of artist royalties in traditional art markets, where artists receive ongoing compensation for their works sold in secondary markets. The introduction of royalty fees for content creators fosters a sense of continuous support and recognition for their artistic endeavors.

💡Note
Within the Immutable ecosystem, the inclusion of royalty fees for NFTs is not mandatory; it's entirely up to the owner of the collection.

However, if the content creator decides to implement royalty fees for their content, Immutable's ecosystem will diligently adhere to this requirement, ensuring that the specified royalty fees are paid accordingly.

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