Royalties on OpenSea, or on most NFT platforms, provide a way for creators to earn a percentage of sales whenever their work is resold in the secondary market. This system ensures that artists continue to benefit financially from the ongoing value and trade of their creations. Below are key aspects of how royalties work on OpenSea, based on information available until January 2022 (ensure to verify with the most current platform guidelines):
How Royalties Work:
Setting Royalties:
- During the minting or listing process, creators can set a royalty percentage for their NFTs.
- The royalty rate is a percentage of each secondary sale that will be paid to the original creator automatically.
Royalty Percentage:
Creators decide the percentage they wish to receive, often ranging between 1% and 10%, though it can be set to any value the creator chooses.
This percentage is fixed once set and cannot be changed after the NFT is minted.
Secondary Sales:
When the NFT is resold, the specified royalty percentage of the sale price is automatically paid to the creator’s wallet.
This process continues for every subsequent sale, providing ongoing revenue for creators.
Platform Support:
Smart Contracts:
