NFTs, DAOs & Web3

How do NFT creator royalties work?

NFT creator royalties are a percentage of each secondary sale that is paid back to the original creator, set when the NFT is created and enforced by the marketplace or smart contract. They let creators earn from resales, not just the first sale. For example, a 5% royalty means that each time the NFT changes hands for 10 ETH, the creator receives 0.5 ETH. Enforcement varies: some marketplaces honour royalties automatically, while others make them optional, so the actual payout depends on where the resale occurs.