Non-fungible tokens (NFTs) royalties are reshaping how developers benefit financially from their work, transitioning them from one-time sales to sustained earnings. The Sandbox has embraced the concept, innovating its marketplace to help facilitate a fair and automatic redistribution of royalties.
The Mechanics Of NFT Royalties
When an NFT is minted, the developers set a royalty percentage, entitling them to a segment of the sales from any future resale of the NFT. The mechanism protects the developer’s intellectual property rights and guarantees continuous compensation. While some platforms have incorporated royalty systems, others rely on optional royalty payments, and some do not enforce any royalties at all, leaving developers with no secondary market earnings.
Implementing A Fair Royalty Network At The Sandbox
At The Sandbox, the philosophy revolves around the support of a global creator economy by redistributing a segment of secondary market royalties back to the original NFT developers. This approach strives to boost long term monetization for developers’ works.
The Sandbox team has developed an internal solution that automatically redirects part of the ASSET‘s secondary market royalties to the original developer’s wallet. Introduced on December 14, 2023, this feature strives to guarantee that developers benefit directly from secondary sales of their assets.
Royalty Redistribution On The Sandbox Marketplace
In The Sandbox, ‘ASSETs’ are voxel assets intended to add some content to different experiences, including games developed on LANDs. Besides their practical use, ASSETs can be collected, traded, and monetized.
Up to now, The Sandbox has got a 5% royalty from secondary sales of ASSETs. With the forthcoming feature, the royalties will be divided equally between The Sandbox and the original NFT creator, each getting 2.5%. The change automatically guarantees that developers get their fair share of secondary market sales.
The mechanism will also be made compatible with other marketplaces that adopt the ERC-2981 standard, with the accessibility planned for 2024, based on a statement by The Sandbox.
Developers using The Sandbox Marketplace can have confidence that secondary market royalties will get reliably enforced and directly deposited into their wallets. The development by The Sandbox represents another stride in guaranteeing fair compensation for developers in the NFT marketplace.
By facilitating a highly automatic and equitable redistribution of royalties, The Sandbox sets a great precedent for how the platforms can support their developer communities in the changing digital art and assets world.
