NFT Royalty
A resale fee paid to an NFT creator or rights holder when the NFT is sold again on a marketplace.
An NFT royalty is a percentage of a secondary sale that is intended to go to the NFT’s creator, artist, game studio, or other rights holder. For example, if an NFT is resold for 1 ETH and has a 5% royalty, 0.05 ETH would be routed to the royalty recipient, while the seller receives the rest after marketplace fees. Royalties are usually set when the NFT collection is created and are recorded in metadata, marketplace settings, or smart contract logic.
NFT royalties matter because they give creators a way to earn from ongoing demand for their work, not just the first sale. This is especially relevant for digital art, collectibles, music NFTs, and gaming items that may trade many times. However, royalty enforcement depends on the marketplace and the NFT’s contract design. Some marketplaces honor royalties automatically, some make them optional, and some may not support them at all. A useful comparison is a musician earning a small payment when a song is reused, except NFT royalties are tied to blockchain-based resales rather than traditional licensing systems.
Other terms in NFTs & Gaming
Floor Price
The lowest listed sale price for an NFT in a specific collection on a marketplace.
GameFi
GameFi combines video games with blockchain-based assets and incentives, such as tokens, NFTs, and player-owned in-game items.
Generative Art
Art created through rules, code, or algorithms, often used in NFTs to produce unique digital works from the same creative system.
Mint (NFT)
Creating an NFT by recording a unique token on a blockchain and linking it to its metadata, such as an image, video, or game item.