What are NFT royalties?
NFT royalties are like a commission that the original creator of the NFT receives on every trade that happens on the secondary market. This commission, defined as a percentage, is automatically enforced by the underlying smart contract.
How do NFT royalties work?
Creators can set a fixed royalty percentage on their collections. That means that every time an NFT from their collection is sold to a new owner, the underlying smart contract will automatically deduct the creator royalty from the sales proceeds and transfer them to the original creator’s wallet, allowing for potentially perpetual residual income to be earned.
How to set royalties on Dropspot?
Setting royalties on Dropspot is easy. In addition to creator royalties, Dropspot gives you the flexibility to include additional royalty recipients at your discretion. This is easily set up within the Create Collection process, allowing you to enter a maximum of 15% across all royalty recipients.
To set royalties on Dropspot, you do so when creating your collection. To get started:
Click on the '+' icon to initiate the Create Collection process.
Once you have entered basic information and branded your collection, you can proceed to defining perpetual royalties to future sales of NFT's in this collection.
By default, your Creator fixed royalty percentage is set to 8%. Click on 'Edit' to update the royalty, should you wish to increase or decrease it.
You can add multiple royalty recipients with a maximum total of 15% across all recipients. To add a royalty recipient, select 'Royalty Tokens' and then 'Add Royalty Recipient', entering the following details: Recipient Name, Tag, Percentage and Wallet Address.
That's it! You can now start earning a percentage on all future sales in the secondary market. 😃