38. Royalties

Non-fungible token (NFT) markets promised to accurately distribute royalties to creators on secondary sales of digital assets. They highlighted immutable provenance and offered smart contracts on underlying blockchains. However, recent trends point toward NFT markets moving away from secondary royalties and toward business models that are built on zero or optional creator royalty. This chapter explores the historical context of artist royalties, highlights the harms that current royalty practices on NFT markets can cause, and calls for systemic change to protect creators’ rights and ensure a fair and democratic digital art economy.