Royalty Payments and NFT-tradingcards.biz
NFT-tradingcards.biz, royalty payments, are a mechanism designed to compensate creators and partners for the ongoing use or resale of their digital assets. When an NFT is sold in the secondary market, the creator can enjoy a royalty percentage, which is a portion of the sale price that they will receive each time the NFT changes hands in the future.
When an artist or creator mints an NFT, the royalty is set as a percentage of the resale price and is embedded in the NFT’s smart contract. The royalty payment is paid on the resale after the initial sale. Common royalty percentages range from 5 to 10%, but this can vary depending on the agreement between the creator and the platform.
If the buyer decides to sell the NFT to someone else, the smart contract automatically enforces the royalty fee. So, if the new owner sells the NFT for a higher price, the creator and in some cases, a partner gets their royalty payments based off the new sale price.
The selling and buying process is facilitated by blockchain technology, smart contracts and the NFT-tradingcards dot, biz platform. The smart contract is a self-executing contract with the terms of the agreement directly written into code. In the case of NFTs, the smart contract enforces the royalty payment.
The royalty payment is in the form of crypto-currency and is sent directly to the creator’s crypto wallet. This is automatic and doesn’t require any manual intervention.
Since the blockchain is immutable and transparent, every transaction, including royalty payments, is recorded and can be verified by anyone.
NFT trading cards dot biz and other NFT marketplaces have integrated support for royalty payments. This means that when an NFT is resold on that platform, the royalty is automatically sent to the creator.
Royalty payments provide an additional way for creators to continue benefiting from the increasing value of their digital creations as they change hands in the secondary market. This can be especially important in digital art, trading cards and collectibles where the value of an artist’s work can appreciate significantly over time.
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