What Are Royalties?
Royalties are a percentage of each secondary sale of an NFT that is sent to the creator of the collection. This feature ensures that creators can continue to earn from their work as NFTs are bought and sold by others.
For example, if a collection has a 5% royalty and an NFT sells for 1,000 ADA, the creator receives 50 ADA as royalties. The remaining 950 ADA goes to the seller.
How Do Royalties Work?
When an NFT with royalties is sold on JPG Store:
A set percentage of the sale price is deducted as royalties.
These funds are automatically sent to the creator’s designated wallet.
Smart contracts facilitate this process, ensuring secure and transparent transactions.
Royalties ensure creators continue to earn income as their NFTs change hands, creating a sustainable ecosystem.
Why Are Royalties Important?
Continuous Income for Creators: Royalties provide a recurring revenue stream, rewarding creators beyond the initial sale.
Encouraging Quality: Knowing they’ll benefit from future resales motivates creators to produce exceptional work.
Sustainable Ecosystem: Royalties support a thriving NFT marketplace by incentivizing creativity and innovation.
Automatic Royalties via Royalty Token
If a royalty token is minted for your collection, JPG Store automatically uses the royalty details embedded in the token to set the royalty percentage and wallet address. This applies even if the collection is not yet verified.
However, these settings can be overwritten when verifying the collection or editing the royalty details of a verified collection. This feature allows creators to establish royalty details early while still having the flexibility to update them later.
To learn more about the Cardano royalty token standard, visit CIP-27.
Setting and Updating Royalties for Your Collection
Creators can update their royalties when verifying their collection or by editing the details of a verified collection. For step-by-step guidance, visit:
How to Edit Your Collection's Information.
How to Check Collection Royalties
To view a collection’s royalty percentage:
Navigate to the collection’s page on JPG Store.
Hover over the gold crown icon next to the collection’s name.
A tooltip will display the royalty percentage set for the collection.
What’s Next?
Understanding royalties is a key part of navigating the NFT marketplace, whether you're a creator or buyer. Check out the links below for further insights:
Royalties not only sustain creators but also enhance the value and trust within the NFT ecosystem.
