Blockchain Royalties: How Creators Earn from Smart Contracts
When you buy a digital artwork or music file tied to a blockchain royalties, automatic payments to the original creator every time the asset changes hands. Also known as smart contract royalties, it lets artists, musicians, and developers get paid long after the first sale—without middlemen. This isn’t theory. It’s built into the code of NFTs on Ethereum, Solana, and other chains. But here’s the catch: most projects don’t actually enforce them.
Blockchain royalties rely on smart contract royalties, self-executing agreements coded into blockchain tokens. These contracts are supposed to trigger a payment—say, 10%—to the creator whenever the NFT is resold. But platforms like OpenSea and Blur can ignore these rules. That’s why some creators get paid, and others don’t. The technology works, but the ecosystem doesn’t always play fair. Meanwhile, NFT royalties, the percentage paid to creators on secondary sales of digital assets are becoming a battleground. Some marketplaces are removing them entirely. Others are trying to make them mandatory. And creators? They’re left wondering if their work will ever earn them a second dime.
It’s not just art. decentralized royalties, ongoing revenue streams enforced by blockchain, not corporations are being tested in music, gaming, and even code. A musician might earn royalties every time their track is played in a metaverse concert. A game developer might get paid each time their in-game item is traded. But without clear rules, enforcement, or adoption, most of these systems stay stuck in pilot mode. What’s real? Only the ones where the buyer, seller, and platform all agree to honor the contract. And those are still rare.
If you’re a creator, don’t assume your NFT will pay you forever. Check the platform’s policy. Look for projects that lock royalties into the token’s metadata, not just a promise on a website. If you’re a buyer, know that skipping royalties might save you money now—but it kills the incentive for creators to build something new. The future of digital ownership depends on who gets paid when. And right now, that future is still being written—in code, in contracts, and in the choices we make every time we click "Buy." Below, you’ll find real cases of what worked, what failed, and what to watch for in 2025.
How NFT Creators Earn Royalties on Resales
NFT creators earn royalties on resales through smart contracts that automatically send a percentage of each secondary sale back to them. But with major marketplaces dropping enforcement, the future of this system is uncertain.