Creator royalties refer to payments made to original creators of digital assets, typically when those assets are sold or resold in marketplaces. This model is most commonly associated with non-fungible tokens (NFTs), where artists, musicians, designers, and other creators receive a percentage of the sales whenever their work is exchanged.The concept is designed to ensure that creators continue to benefit financially from the ongoing appreciation of their work. For example, if an NFT originally sells for $100, and the creator receives a 10% royalty, they would earn $10 on that sale. If the NFT later resells for $1,000, the creator would earn another $100.These royalties are enforced through smart contracts, which are self-executing contracts with terms directly written into code. This mechanism automates the royalty payments, providing transparency and security. Many creators see royalties as a way to support their livelihoods and encourage more creators to enter the space.