The non-fungible tokens (NFT) market is experiencing unprecedented growth. As a result, creators and artists are looking for ways to profit from their contributions to digital assets. A key aspect of this is the NFT royalties factor, which allows creators to continue profiting from their efforts even after their initial sale. In this regard, The Sandbox has introduced a new royalty redistribution system. This will help boost the platform’s marketplace creators.
NFT royalties were created to allow artists and creators to earn passive income from their digital output. At the time an NFT is created, a royalty attribute is set, which represents the percentage of revenue coming in from each subsequent resale of the NFT. This ensures timely compensation.
With the introduction of Fade in 2022, royalties have been implemented in the NFT ecosystem. Most NFT spaces and platforms devised systems to automatically award royalties on secondary sales. They amounted to between 5% and 10% of the resale cost and were released to the owner of the smart contract. Different platforms have their own way of handling royalties. Some adopted the system, others did not.
In the case of The Sandbox, they plan to redistribute a portion of the secondary market royalties to the actual NFT creator to create an international creator economy that would support the commercialization of their efforts.
The team at The Sandbox has come up with an internal solution for repaying a portion of ASSET’s secondary market royalties to the actual NFT creator. This new feature will be positioned live soon. The solution gives their marketplace the ability to forward royalties directly to the wallet of the actual NFT creator. It will also be adaptable to any market that implements the ERC-2981 standard.
To date, The Sandbox has received 5% royalties on secondary ASSET sales in recognition of contract ownership. In light of the recently implemented royalty redistribution features, royalties generated from assets sold on the Sandbox marketplace will automatically be split in half, with The Sandbox receiving 2.5% of the royalties. An additional 2.5% is transferred to the NFT creator.
