NFT’s royalty, who pays whom?

The crypto market has seen a huge increase in capital over the past decade. However, the capital has increased significantly over the past four years. It has become one of the fastest growing markets in the world. NFT’s royalty has played a decisive role in this. With the use of NFTs, new investors, project owners and creators are coming to the market and the market is growing daily. Many believe that the future of crypto is NFT.

Nevertheless, there is a heated debate about NFT’s projects and royalties. The discussion started in September about NFT’s royalty distribution. It was decided that NFT’s royalties should be distributed to the buyers. Still, many crypto CTs and others opposed the decision and it was reversed to the NFT community to decide on their own. Now the question is, who will pay who? Before answering that, you should know about a few basics about NFT’s royalty.

The natural face of NFT’s royalty

To know the natural face of NFT, you should know about the following.

Project owners

Project owners are NFT’s natural face. They are the first to hold the NFTs and they decide on the graphic design and distribution of roles to different community members. They are responsible for marketing and related operations.

Creators

The people who create the project. They may not be part of the team. They can also be owners. They create the project and give it to the project owners for marketing and other operations.

Investors

These are buyers and sellers of the NFTs. When you buy an NFT you become a member of the community and although you can sell it, you are still part of the community and contributing to it, you will not take benefits that the buyers take.

The community includes those directly or indirectly related to the project. It includes project owners, creators, investors, non-owners, etc. The role of these people may change over time. For example, if a person enters the community as an investor and later finds out that the project has a certain potential and buys a share in the project, that person can also be a project owner.

Marketplace

It is the platform where community members can buy and sell NFTs.

Who does NFT pay royalties to?

Now the question is, to whom should NFT’s royalty be paid? This can be explained in two scenarios.

In the first scenario, NFT’s royalty is received from default to an independent address with different project signatories. Once the royalty is received, it will be distributed among the members according to their role in the project. Some will distribute royalties in wages to creators, community operators, finance, marketing, and so on. It is up to the team to decide how much royalty to receive.

In the second scenario, the creator receives all NFT’s royalties to his independent address, and then distributes the royalties to various project members. It can be in the form of daily wages, salaries, marketing and other project-related activities.

What if the project fails?

Many crypto experts believe that not all NFT projects should be paid royalties. They are of the opinion that the market should limit all those NFT projects that are boring and have no potential in the foreseeable future. The NFT project can be judged by its activities on social media such as Twitter, Discord, Telegram, etc. If they are not active, their NTF’s royalty should be limited. And when a new team comes, the royalty is to be paid to that team.

Last thought

There is a big debate about NFT’s royalties about who should pay whom. Although the process is a bit complex, these royalties are the backbone of a project. If the project is to go well, it must have enough royalties. The distribution of these royalties to different project members should be decided by the community, not by one person, the creator of the project owner. Everyone in society must have the right to vote for NFT’s royalty.