Description: Royalties in the context of NFTs (non-fungible tokens) refer to a payment made to the original creator of an NFT each time it is sold in the secondary market. This mechanism allows artists and creators to maintain a continuous source of income over time, even after they have initially sold the work. Royalties are a fundamental feature of NFTs, as they ensure that creators are compensated for the value their work generates in the market. Unlike traditional artworks, where artists often receive nothing from resales, NFTs allow for a specific percentage of royalties to be allocated to the creator in each subsequent transaction. This percentage can be set by the creator when minting the NFT and is automatically executed through smart contracts on the blockchain, ensuring transparency and trust in the process. Royalties not only benefit artists but also promote a more sustainable and fair ecosystem in the digital realm, where the value of works can increase over time. In summary, royalties in NFTs represent a significant advancement in how digital art and creativity are monetized in the modern economy.
