Skip to main content
Learn

What Is a “Royalty” Mechanism in an ERC-721 Contract?

A feature that automatically sends a percentage of the secondary market resale price back to the original NFT creator.
Greeks.Live16.11.25

What Is a “Royalty” Mechanism in an ERC-721 Contract?

A royalty mechanism allows the original creator of an NFT to automatically receive a percentage of the sale price every time the NFT is resold on a secondary market. This is often implemented via a standardized extension (like EIP-2981) that marketplaces can choose to honor.

It provides a continuous revenue stream for artists and creators beyond the initial sale.

What Are the Key Differences between ERC-721 and the Newer ERC-1155 Standard?
Can a Non-Fungible Token (NFT) Be Fractionalized, and What Standard Governs This?
How Does the ERC-721 Standard Differ Fundamentally from ERC-20?
How Does ERC-1155 Improve Gas Efficiency over ERC-20 and ERC-721?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.