Creator Royalties NFT

Understand key crypto terminology related to Credit Default Compliance, which outlines risks, responsibilities, and regulatory standards in the financial sector.

Creator royalties in NFTs refer to the ongoing earnings that artists or creators receive each time their work is sold in secondary markets. When an NFT is initially sold, the creator typically earns a percentage of the sale price, often set at around 5-10%. This is coded into the smart contract associated with the NFT.As the NFT is resold, the smart contract ensures that the original creator automatically receives their set percentage from each subsequent sale. This feature allows creators to benefit from the appreciation of their work over time and provides them with a continuous stream of income.Creator royalties support artists by giving them a fair share of the profits generated from their work, regardless of how many times it changes hands. This model helps to build a sustainable ecosystem for creators, encouraging them to produce new work while ensuring they are compensated for their contributions. Overall, creator royalties enhance the value proposition of NFTs by aligning the interests of artists and collectors in a collaborative marketplace.

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