NFT Royalties: How Creators Earn Every Time Their Art Sells

When you buy an NFT royalty, a percentage of future sales automatically paid to the original creator through blockchain smart contracts. Also known as resale royalty, it’s the only way digital artists get paid long after their work leaves their hands. Unlike physical art, where collectors keep all profits from resales, NFT royalties give creators a fair shot at ongoing income—something the art world never offered before.

This system runs on smart contracts, self-executing code on blockchains like Ethereum that enforce payment rules without middlemen. Every time an NFT changes hands, the contract checks who owns it, who created it, and how much the creator is owed—then sends the money instantly. No invoices. No delays. No arguing. That’s why creators in music, digital art, and gaming are pushing hard to keep royalties alive, even as some marketplaces try to remove them.

But here’s the catch: NFT marketplaces, platforms like OpenSea, Blur, and LooksRare where NFTs are bought and sold aren’t required to honor royalties. Some have stopped enforcing them, arguing buyers should own the asset fully. That’s left creators in a tough spot—fighting to protect their income while platforms move toward open access. The result? A growing divide between those who believe royalties are essential for survival and those who see them as outdated restrictions.

What’s clear is this: without royalties, most NFT artists wouldn’t make a living. The top 1% earn millions, but the rest rely on small, repeated payments to keep creating. That’s why projects still offering royalties—like those tied to music NFTs or game items—are gaining trust. Buyers who care about supporting creators look for them. Investors watch them as a sign of long-term value. And regulators are starting to ask whether they should be protected like traditional copyright.

Below, you’ll find real-world examples of how NFT royalties play out—from artists who made their first $10,000 from a single resale, to platforms that dropped royalties and lost users overnight. You’ll also see how some creators are building their own systems to bypass broken marketplaces. This isn’t theory. It’s how money moves in digital art today.