Royalties in NFTs as a form of creating wealth.

A short article about royalties in NFTs creating wealth for individuals (or) brands and why they are one of my favourite things to talk about w/ NFTs.

Royalties in NFTs

I have briefly talked about royalties on my Twitter and this article/post will be based around a thread I released, I will go into detail on my personal thoughts behind most of what is mentioned.



Implementation of current royalties and how they will improve (short-term) is something people can argue against the concept of “royalties” going back to the artist.

And, some are valid concerns. However, the main point of the thread is to talk about royalties being the structure of passive income for artists, creatives and any NFT in general.



A quote from Naval, and a special shoutout to him, a very smart individual that I learn from. Check him out if you have time. You can thank me later.

“Seek wealth, not money or status.” — Naval

This quote is important if you seek to live a “financially-free” life without working. Now, we can go deep into if something is classified as work if you don’t treat it like work but this quote is vague in that format.

Rather than seeking a lot of money (to be rich), you want to seek wealth, passive income. Assets that allow you to earn while you sleep. Currently in NFTs, royalties is something that make this possible, the equivalent in buying equity from a brand.

Now if we talk about Crypto Art, you are investing into the artist, the individual who created this. Royalties return back to the artist % based right now, but going back to the first point in the thread, we can build on different mechanisms to perfect “the concept of perfect royalties” even though it depends on the individual(s).



To avoid people who may take this out of context, NFTs aren’t just art. But, it still makes sense in the form of art. Some artists want to create art for as long as they live and a lot of artists have different meanings to why they create art, however, some may quit one day.

So, strictly speaking financially, wealth is what you want.

  1. Taking Beeple as an example, if he stopped creating NFTs; vouched to never mint another piece (don’t take this out of context, again. ;]).

First, it enforces other artificial forms of value to his pieces like scarcity, but, he doesn’t need to earn from any primary sources. He could most likely live a fairly nice life, a wealthy life, from his royalties on his previous NFTs. This is a very important point to highlight and it applies to other artists, not just top ones, but right now — there are a lot more stats to show for them.



Whatever NFTs are created in the future, this could be art, collectibles, games or songs — royalties can be applied to them through the blockchain. Through past efforts and past work, they will be rewarded due to royalties being imbedded into NFTs.

Again, this is why I believe royalties and NFTs work perfectly well.



NFTs are another way for people to experience wealth. Passive income. Focused on an individual. This can also apply to brands or corporations if they create NFTs but now individuals have more of a chance to experience wealth through creation of NFTs.

Not everyone is going to experience this, but, it gives a chance.

I am excited to see how the tech evolves in the future, and I can’t wait to see how royalties change alongside this. A big part to creating more wealth for more individuals.


Be sure to follow me on Twitter where I share advice a lot more frequently. I plan to create more articles that help; I think I will base them around more of my Twitter threads. I have switched to the route where I want to do fewer low quality articles/posts and more higher quality ones.

I hope you learnt something from this post.

Share