Can you explain how NFT royalties are calculated?

3 answers

• Dec 25, 2021 · 3 years ago
  Sure! When it comes to calculating NFT royalties, it typically involves a percentage-based approach. The creator of an NFT sets a royalty percentage, which is a portion of the resale price that they will receive whenever their NFT is sold in the secondary market. For example, if the royalty percentage is set at 10% and the NFT is resold for $1,000, the creator would receive $100 as a royalty fee. This percentage can vary depending on the platform or marketplace where the NFT is listed, and it's usually agreed upon between the creator and the platform. It's important to note that royalties are only applicable to secondary sales and not the initial sale from the creator to the first buyer.
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• Dec 25, 2021 · 3 years ago
  Absolutely! NFT royalties are calculated based on a predetermined percentage of the resale price. This percentage is set by the creator of the NFT and can range from as low as 1% to as high as 30% or more. The royalty percentage is typically agreed upon between the creator and the platform where the NFT is listed. When the NFT is resold in the secondary market, the royalty amount is automatically deducted from the sale price and paid to the creator. This allows creators to continue earning income from their work even after it has been sold. It's worth mentioning that the exact calculation of royalties may vary slightly depending on the platform or marketplace, but the underlying principle remains the same.
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• Dec 25, 2021 · 3 years ago
  Sure thing! NFT royalties are calculated based on a percentage of the resale price. When an NFT is sold in the secondary market, a portion of the sale price is automatically paid to the original creator as a royalty fee. The specific percentage is determined by the creator and can vary depending on the platform or marketplace. For example, if the royalty percentage is set at 5% and the NFT is resold for $1,000, the creator would receive $50 as a royalty fee. This provides an incentive for creators to continue earning income from their NFTs even after the initial sale. It's important to note that royalties are typically only applicable to secondary sales and not the initial sale from the creator to the first buyer. I hope this clarifies how NFT royalties are calculated!
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