Royalties
Click on the Royalty type to go directly to the section:
Like physical art and media, NFTs can have royalties too! The Royalties system allows the creators to continue receiving revenue from their creations each time an NFT is sold. This also helps artists to make a living from their work so they can continue creating.
NFT royalties give the creator(s) a percentage of the sale each time the NFT creation is sold on a marketplace. NFT royalty payments are perpetual and are executed by smart contracts automatically. These contracts provide a way for marketplaces to ask what the appropriate royalty amount is and who the royalty recipient should be for any token in that contract.
Every time an NFT is sold on LUXY Marketplace, any royalties attached to that NFT are transferred to the wallet address(es) set by the creator during the minting process.
There are a number of token standards out there, each one with similarities and differences. You can learn more about the standards that LUXY is compatible with here!
LUXY Marketplace also provides two layers of Royalties: NFT Royalties and Collection Royalties.
NFT Royalties
What they are:
Defined at mint, NFT Royalties are related to the NFT ID. Your NFT will earn you the specified percentage of all future sales.
NFT Royalties information is registered in the smart contract and can be set up in LUXY's royalties section during minting. Currently, LUXY Marketplace is compatible with LUXY V1, Rarible V2, and EIP-298. This means that if your collection follows one of these standards your NFT Royalties will be compatible with LUXY, and you'll keep receiving that percentage of secondary sales.
How we do it at LUXY:
LUXY NFTs are created using our own standard (LUXY V1). This allows the creator to input more than one address that will receive royalties, each with it's own specific percentage. This is incredibly useful, especially for collaborative artwork and media distributors. This is specified during the minting process. The creator can set any wallet address as a royalty recipient, or not set any royalties at all.
Again, LUXY Marketplace is compatible with three (3) types of NFT Royalty standards: LUXY V1, Raribles V2, and EIP-2981. You can learn more about these standards here!
Compatibility:
LUXY aims to continually integrate useful industry standards as they arise, to allow Collection Owners to easily bring their collections to LUXY without losing collaborative setups.
Collection Royalties
What they are:
A royalty that is set by the Collection Owner, which applies to all sales of any NFTs within the collection.
How we do it at LUXY:
Similar to NFT Royalties, Collection owners can specify multiple addresses that will receive revenue from sales according to the individually defined percentages.
Compatibility:
Applies to LUXY marketplace only.
Maximum Flexibility for Royalties
LUXY Marketplace gives you the flexibility to set royalties as you please. For example, setting a high-percentage royalty can be useful for a charity-focused NFT. The sum of all royalty percentages across both types (NFT + Collection Royalty percentages), can be up to 98% of an NFT or Collection sale. In a max scenario, the remaining 2% is the LUXY Marketplace base fee.
You can define both Collection Royalties and separate NFT Royalties for each NFT within the collection. In this case, the royalties are combined for a sum royalty on each sale.
Last updated
