Hedera, one of the largest market platforms and protocol for digital assets and non-fungible tokens, has launched a new NFT feature allowing NFT creators to implement and hard-code royalty payments into their NFTs at the time of minting.
Hedera To Enforce NFT Royalties At Protocol Level
In a January 12 short video, Gregory Schneider, the Deputy General Council at Hedera, confirmed the launching of the new NFT feature allowing NFT creators to collect their NFT royalties right at the protocol level.
According to Schneider, the new functionality will allow NFT collectors to collect their royalties even if users are not trading through a marketplace. The peer-to-peer digital assets sale is a perfect example.
Furthermore, the new feature will allow NFT creators to set their royalties interest from as low as 0.1% to as high as 90%. NFT creators can even set multiple royalty fees for multiple accounts at every resale.
According to Hedera, the new functionality will mitigate rampant profiteering of art by third parties and collectors and promote the rightful royalties compensation for the creators of the art seamlessly.
In many NFTs, in their current form, the NFT royalty collection model needs to be revised. Therefore, outside of NFT marketplaces, creators are unable to realize downstream sales profit from their works.
Other NFT Projects Enforcing NFT Royalties
The NFT royalties attracted a heated debate within the crypto community last year after the NFT marketplace X2Y2 made creator royalties optional to attract more traders. Although the move would help traders earn more profit, it would hurt NFT creators.
After heavy pushback and competitive pressure, the X2Y2 marketplace changed its stance and began re-enforcing NFT royalties, attracting a series of marketplaces to follow suit. Other who recently decided to enforce NFT royalties includes Magic Eden, OpenSea, and Immutable, among others.
In the meantime, Hedera is the first protocol to enforce NFT royalties at the protocol level. NFT creators on popular chains, such as Ethereum, Polygon, Solana, and other blockchains that support NFTs, completely depend on the NFT marketplaces.
Related
- NFT Markets That Ban Royalties Face Growing Backlash From Creators
- OpenSea Launches Tool Enabling NFT Creators To Set Royalties
- Royalties No Longer Optional, As Magic Eden Launches NFT Tool To Enforce Them
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