Here’s an innovative way blockchain technology with royal integration empowers NFT artists for seamless payment.

Professionals in the Web3 industry assert that blockchains embedded with royalties in their code can ensure the protection of creator royalties. In 2023, one of the significant challenges faced by nonfungible token (NFT) creators was the loss of royalties. As marketplaces experimented with the optional royalties model, creators missed out on millions of dollars they could have earned from their NFT collections. On July 16, data from blockchain analytics firm Nansen revealed that royalties on Ethereum-based NFTs reached a two-year low.
While some platforms continue to adopt the optional royalty trend, others are taking a different approach by incorporating built-in royalty enforcement tools in their blockchains. In June 2023, Enjin, a blockchain platform focused on NFTs, launched a blockchain mainnet that included embedded royalty enforcement in its foundational code.
In addition to Enjin, the RARI Foundation, the nonprofit division of the Rarible ecosystem, introduced a testnet for an Ethereum Virtual Machine (EVM)-compatible chain that integrated royalties into its node. The foundation released the mainnet version of the blockchain on Jan. 24.
Jana Bertram, the head of strategy at the RARI Foundation, explained the significance of embedding royalties within the blockchain. She stated that it provides the highest level of assurance that a creator’s royalties will be honored. Compared to app-level enforcement, node-level royalties are permanent and cannot be altered. Bertram also emphasized that this could contribute to the development of a sustainable Web3 creator economy, enabling creators to generate revenue whenever their NFTs are traded. She stated, “Royalties are a crucial tool for creators to make a living, and their enforcement and guarantee are vital for their long-term success in Web3.”
Nadaine Tongco-Edades, the vice president of finance at Atlas Development, echoed these sentiments and suggested that this could potentially revive interest in NFTs. If royalties prove to be a reliable revenue stream, new business models may emerge in the NFT space, sustaining various NFT projects that are experimenting with the technology. Tongco-Edades emphasized that royalties are among the NFT functions that are best enforced on-chain. She added, “Chains with NFT functions, especially royalties, hardwired at the protocol level offer the strongest holder protection and greatest user convenience.”