NFT Royalties Explained: What Creators Can Still Enforce in 2026

An NFT royalty is a percentage of a future sale price that a creator sets when minting a token. It is meant to give the original artist or developer a share each time the item changes hands on the secondary market, which is the resale market that happens after the first sale.

A royalty has three basic parts:

• Percentage: the share of the sale price the creator wants to receive, often set when the collection is created.
• Recipient address: the wallet that should receive the fee.
• Enforcement: whether the marketplace or contract actually pays the fee on each sale.

The first two parts are usually set by the creator. The third part is where the debate lies. A royalty recorded in metadata or a contract is a signal of the creator's intent. It is not a payment that happens by itself. Someone or something has to route the fee to the recipient during the sale.

Royalties also differ from the platform fee that marketplaces charge for running the venue. The marketplace fee goes to the platform. The royalty goes to the creator, and it is separate from the price the buyer and seller agree on.

In the early years of NFT trading, most marketplaces paid royalties by default when a collection had one set. That default was a matter of marketplace policy, not of the token itself. A buyer could often avoid paying the royalty by using a different venue that did not honor it, which created an uneven playing field for creators.

In November 2022, OpenSea launched an on-chain tool to address this. The tool, called Operator Filter, let creators use contract code to block trades from marketplaces that did not enforce royalties. Reports at the time described it as a way to blacklist collections from being resold on marketplaces that did not pay creators. The tool applied to new collections rather than existing ones.

The approach was effective for creators who used it, but it had clear trade-offs. It limited where a collection could be traded, and it depended on marketplaces choosing to participate in the enforcement scheme. Enforcement by contract code also raised questions about how much control a creator should have over where a token moves after it is sold.

In August 2023, OpenSea announced it would stop enforcing creator royalties and make creator fees optional. Reporting from that period said the change would take effect for new NFTs on August 31, 2023, and for existing NFTs in March 2024. OpenSea also said it would discontinue the Operator Filter tool that had let creators block marketplaces that did not pay royalties.

The announcement drew a strong reaction. Creators and commentators argued that optional fees would reduce income for artists and developers who depend on resales. Some described the decision as a reversal of an earlier commitment. Other coverage linked the change to competition from marketplaces that had lower fees or did not enforce royalties at all.

OpenSea had also changed its royalty stance before, which is part of why the 2023 change drew so much attention. For readers, the key point is simple. The platform that had been the largest NFT marketplace by trading volume moved from mandatory to optional creator fees, and that changed the economics for many collections traded there.

If you are reading this later, check OpenSea's own announcements for the current status, since policies on fees and enforcement can be updated again.

Marketplace decisions about royalties are shaped by several forces at once. Understanding them helps creators and collectors judge future changes more calmly.

Competition for trading volume. Venues compete for traders. A marketplace that charges fewer fees or does not require a royalty can attract sellers who want to keep more of the sale price. Reporting on the 2023 change linked it to this kind of competition.

Buyer behavior. Some buyers prefer venues where they pay less in total. If a royalty is optional, the marketplace can offer a lower visible cost, which may win more trades in the short term.

Technical limits. Enforcing royalties through contract code can be complex, and it depends on all parties agreeing on the same standard. This makes it harder for any single venue to guarantee payment across the whole market.

Creator expectations. Creators have increasingly built royalty income into their business plans. When a platform changes its policy, the impact can be large for artists who depend on resales.

No single factor explains every decision. For a reader, the main lesson is that royalty policy is a business choice made by each platform, and it can change. A royalty shown on a collection page is a promise by the creator, while the actual payment depends on the venue that handles the sale.

Royalties are often discussed as a single idea, but in practice there are several models. The table below compares the main approaches. Each marketplace and collection can combine them differently, so check the current terms before relying on any of them.

Model	How it works	What creators get	Main trade-off
Mandatory enforcement	The venue pays the royalty on every resale it processes	Predictable income from venues that enforce	Can limit where a collection trades
Optional fees	Buyers or sellers can choose whether to pay the royalty	Income depends on how often the fee is paid	Lower visible cost can attract trades that skip fees
Contract-level enforcement	Token contract code restricts trading to approved venues	Stronger control over where the token moves	Depends on wide adoption and can reduce liquidity
No enforcement	Royalty is recorded but not automatically paid	Little or none, unless the buyer chooses to pay	Simplest for traders, weakest for creators

When reading a collection page, look for the royalty percentage and any note about how it is paid. If the page does not explain the mechanism, assume that payment is not guaranteed. The table is a starting point for understanding the terms, not a replacement for reading a platform's current policy.

Creators set royalties when they create a collection or mint a token. The exact steps depend on the platform, but most follow a similar pattern. You choose a percentage, enter the wallet that will receive the fee, and save the setting with the collection or contract.

A few practical points help avoid problems later:

1. Choose a realistic percentage. A very high royalty can discourage resales, and some buyers may avoid the collection entirely.
2. Use a wallet you control. Make sure the recipient address is correct and secure, because payments go directly to it.
3. Check the standard the contract uses. Many royalty setups follow a common standard for signalling royalty information. This helps marketplaces read the setting, though it does not force them to pay.
4. Record the terms. Keep a written note of the percentage, recipient and any platform-specific settings, so you can answer questions from buyers and your own team.
5. Review marketplace policies regularly. Royalty rules can change, so a setting that worked last year may not produce the same result today.

If you use a platform that offers creator tools, read its documentation carefully. Some tools let you set royalties at the collection level, while others apply them per token. Mistakes in this setup can be hard to fix once tokens are in circulation.

If you are a creator and want to protect resale income, the options depend on your platform and your goals. No single approach removes all risk, so most creators combine several steps.

• Pick venues that honor royalties. Check each marketplace's current policy before listing your collection there. Venues that enforce fees are a better fit for creators who rely on resales.
• Diversify your sales channels. Selling on several platforms can spread risk, but you should understand how each one handles royalties.
• Consider on-chain settings. Where your collection supports on-chain royalty information, make sure it is set correctly and documented.
• Communicate clearly with collectors. Explain your royalty terms on the collection page, so buyers know what to expect before they trade.
• Watch policy announcements. Subscribe to official marketplace channels and read updates when they are published, since changes can take effect on a set date.
• Consult a professional for legal or tax questions. Royalty income can have tax and contract implications that depend on where you live and how your agreements are written.

Creators who rely heavily on resale income may want to plan for policy changes. A business that treats royalties as one revenue stream, rather than a guaranteed one, is usually better placed to adjust.

Collectors do not usually pay royalties directly, but the royalty setting affects the total cost of a resale and the value the creator can keep building. Before buying an NFT on the secondary market, it helps to check a few things.

1. Look at the listed price and any fees. The price shown may not include the royalty or platform fee. Read the breakdown before confirming.
2. Check the royalty percentage and how it is paid. A collection page should explain whether the royalty is enforced, optional or not paid by the venue.
3. Read the marketplace's current terms. Policies on royalties can change, so the rules that applied when the collection was minted may no longer hold.
4. Compare venues. A lower price on one platform may come with fewer creator protections. Consider the full cost, not only the headline price.
5. Keep records. Save receipts and transaction details, which help if you later need to show what you paid and when.

Collectors who support creators may choose to pay optional fees when a platform allows it. That is a personal decision and is not required on most venues.

Royalty policies change, and the most reliable information comes from primary sources. When you need the current status of a royalty on a specific platform, check the following places rather than relying on older articles or social media posts.

• The marketplace's official announcements and help pages. These describe the current policy, effective dates and any transition rules.
• The collection page. Look for the royalty percentage and any note about enforcement or optional fees.
• The token or contract documentation. For on-chain royalty setups, the contract's published information shows what is recorded.
• Official creator or project channels. Collection teams often explain how they expect royalties to work on each venue.
• Recent reporting from reputable news outlets. Use these to understand context, but confirm details with the platform itself.

When you find conflicting information, trust the platform's current policy over older summaries. Dates matter. Policies announced in one year may have been updated later, so note when each source was published before you act on it.

Several misunderstandings come up often when people discuss NFT royalties. Clearing them up helps both creators and collectors make better decisions.

Myth: A royalty is a legal right that every marketplace must honor. A royalty is a setting that marketplaces can choose to honor. Its enforcement depends on platform policy, contract design and, in some cases, legal agreements outside the blockchain.

Myth: On-chain means guaranteed. Recording a royalty on-chain makes the information visible and standardised. It does not force a venue to pay the fee, and it does not stop trades on platforms that ignore the setting.

Myth: Royalties only matter for famous artists. Smaller creators often rely more on resales, because a single successful collection can keep earning from secondary trades for a long time.

Myth: One platform's policy applies everywhere. Different marketplaces follow different rules. A collection can be enforced on one venue and optional or unpaid on another.

Myth: The 2023 change ended royalties entirely. Reporting from that period described the end of enforcement on one major platform. It did not describe the end of royalties as a concept, which still exist as settings that creators can use.

Understanding these points makes it easier to read any future policy change with a clear view of what it does and does not affect.