Royalty in cryptocurrency refers to a form of revenue generated from the use or creation of digital assets. This concept is often applied to non-fungible tokens (NFTs), where creators receive a percentage of sales every time their work is sold or resold.When an NFT is initially sold, the creator may set a royalty percentage, ensuring they earn a share of future transactions involving their work. This model enables artists and content creators to benefit from the increasing value of their creations over time.Moreover, smart contracts are used to automate the royalty payments, making the process efficient and transparent. Once the conditions of the contract are met, the royalties are distributed automatically, eliminating the need for intermediaries.This mechanism not only incentivizes creators but also fosters a more sustainable ecosystem for digital art and assets. As the market evolves, royalty systems are becoming essential for fair compensation, encouraging artistic innovation and the growth of the digital asset market.