On Finay, artists can earn royalties from every resale of their NFTs, allowing them to benefit from their work as it appreciates in value. When setting up an NFT, artists can choose a royalty rate between 0-20%, which will apply to all subsequent sales on the platform. This royalty percentage is clearly displayed on the NFT’s item description card, so buyers know the artist’s share with each transaction.

How Do Royalties Work in NFT Marketplaces?

NFT royalties are a unique feature of blockchain technology, providing artists with recurring income each time their work is resold. Here’s how it works:

1. Initial Sale

   • When an artist first sells an NFT, they receive the full sale price (minus any platform fees if applicable).

2. Subsequent Sales (Royalties)

   • For every resale on the secondary market, the artist earns a percentage of the sale price as a royalty. The royalty rate, set by the artist, is automatically applied to each resale, and the funds are transferred directly to the artist’s wallet.

3. Blockchain Automation

   • Blockchain technology ensures that royalty payments are transparent, secure, and automatic. Each resale transaction is recorded on the blockchain, where smart contracts enforce the royalty terms, ensuring artists receive their share without needing a third party to manage payments.

This royalty structure empowers artists, allowing them to continue earning from their creations over time. By enabling artists to set royalties from 0-20%, Finay ensures they have control over how their work generates value in the marketplace.

If you have any questions about royalties or setting up your NFT, please reach out to us at info@finay.com.