NFT royalties were never enforced onchain, even though everyone expected them to be. 

Onchain royalties on secondary sales have always been an important value proposition of NFTs, but they’ve been misunderstood for a while now. In a way, NFT royalties reached product-market fit before there ever was a “product.” 

Creators now have a few different solutions to choose from, but each come with tradeoffs that can be difficult to navigate. 

So how do NFT royalties work, and why have they been so challenging to implement?  

Here are some thoughts from @skominers, @darenmatsuoka, and myself on current designs, along with a few new ideas. 

Full post 👉 https://a16zcrypto.com/posts/article/how-nft-royalties-work/

@a16zcrypto • Harvard/HBS • 🧩 • QED

crypto @a16z | programmer | magician | x0r

Good stuff. I made an early version of “right of reclaim” a while back through the terms of a collection license agreement that required royalty payment to use the IP, but with no onchain enforcement mechanism.

Imagining a future for onchain books 💜📖🎩