How will developers collect royalties for NFTs?

It’s my understanding that a Babylon token could have certain behavior attached to it, one of them being that in order to send it anywhere, certain conditions must be met.

One of these conditions could be that it can only be transferred as a sale - say, for instance, it’s transferred as a swap between another wallet who sends 1000xrd to buy it, and then a % is taken as a royalty.

How does this actually work? Do they both have to sign the transactions before they get submitted as an atomic type of swap? Is the token truly non-transferable in any other way, or could it be gifted (and then that opens it up to OTC escrow to get around royalty fees)

Is scrypto in a place where someone could demonstrate this kind of behavior?


Not sure about scrypto but this is already happening on other chains, right? The royalties are encoded in the smart contracts. Just recently saw that Goblins has made humungous money in royalties, more than many other projects’ royalties combined.


Yes, but NFTs on other chains are not actually assets, they are numbers in a smart contract. Since radix works differently, it’s harder to apply logic that will work on a token itself. So I’m wondering - if the NFT creator fails to make the token have these special rules, are they prevented from ever collecting royalties? Can rules on tokens be changed or are they immutable?

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Developer royalty is not something akin to royalties present through users and trading. The idea with blueprints and developer royalty is that the more a package or blueprint gets used, the more rewards the developer/creator of the component earns through fees burned. This allows automated rewards and encourages the developer to share their blueprint.

I wasn’t asking about that.

Ah my apologies, this is was late when i typed this post. In this case for NFT royalties, it will have to be through an escrow/marketplace component where you would set a royalty on sale. It is currently not possible to set a royalty on each transfer if there is no component acting as an intermediary. Its not going to be an atomic swap due to the badge authorization model. So the process in a marketplace would be something like:

NFT Creator registers and gets badge
NFT Creator sets royalty at X%
NFT Creator puts NFTs for mint

Seller registers and gets badge
Seller mints NFT from NFT Creator
Put NFT for sale
NFT gets sold to Buyer
Sold amount is held in the Seller’s vault, X% royalty also gets taken to the NFT Creator’s vault as part of the sale

Seller calls “withdraw” method to claim all earnings
NFT Creator calls “withdraw_royalty” method to claim all sales made for their NFT

In this case, because scrypto knows about what NFTs are, there is nothing stopping someone from simply transferring the NFT directly and not have royalty as a deduction.

It is currently not possible to create those specific conditions when transferring. Those conditional transfers for a given resource is a condition where you specify if one or more or all of some resource is present in the authorization zone.

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Sorry if I misunderstand something but can you confirm in regards to an NFT, lets say it gets sold 10 times, does the person who first minted the NFT get a portion of the sale ten times ? Or is it only the next person who gets that or does it depend on the NFT, cause I understand that every time an NFT is sold the person who owned it gets a portion ?

Is that correct ?

I believe royalty for image NFTs work such that the creator of the NFT gets a portion of sold amount of all sales. Not sure about the minter/seller getting a cut in royalty. Others more knowledgeable than myself may have more insights on this


Thanks but is that how all NFT work by proxy or are they programmed to give royalties back ? Is it the same percent for all ? @kevinforrestconnors @AV7744 Maybe you guys know?

No idea mate. Maybe Kevin knows. I have not been too active in other NFT communities.

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