Royalties

Immutable's ecosystem enforces the payment of royalty fees to content creators when assets are bought and sold. Royalty fees are set during the minting process by a collection' smart contract.

Sections

• What are Web3 Asset royalties?
• Why does Immutable enforce royalty fees?

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💡MANDATORY COMPLIANCE

To make sure that creators receive their hard earned loyalties, Immutable requires that all collections of ERC-721/1155s deployed on Immutable zkEVM implement the Operator Allowlist. Not implementing will have these effects for your collection (i.e. ERC-721/1155s):

1. You may forfeit any token grants you may have received.
2. Passport users will receive a warnings that your collection is likely to be counterfeit.
3. Your collection will not appear on any of the 3rd party marketplaces in our ecosystem.

For more information on the Operator Allowlist, please see this guide.

What are Web3 Asset royalties?

In the secondary market, when a non-fungible (NFT) or semi-fungible (SFT) asset is sold or traded, a royalty fee, if set by the content creator, automatically directs a portion of the transaction value to the original creator.

At Immutable, this royalty fee enforcement is managed through smart contracts. Immutable's preset ERC721 and ERC1155 collections include provisions that accurately calculate and distribute royalty fees to the creator or rights holder each time the asset is resold.

Why does Immutable enforce royalty fees?

At Immutable, we are committed to nurturing a thriving Web3 gaming ecosystem, and an essential aspect of this ecosystem is the availability of high-quality content.

Royalty fees play a vital role in ensuring that artists and creators continue to benefit from the value generated by their creations, even after the initial sale. By receiving a percentage of subsequent sales, creators are incentivized and rewarded for their invaluable contributions, talent, and creativity. This practice mirrors the well-established concept of artist royalties in traditional art markets, where artists receive ongoing compensation for their works sold in secondary markets. The introduction of royalty fees for content creators fosters a sense of continuous support and recognition for their artistic endeavors.

💡Note

Within the Immutable ecosystem, the inclusion of royalty fees for NFTs/SFTs is not mandatory; it's entirely up to the owner of the collection.

However, if the content creator decides to implement royalty fees for their content, Immutable's ecosystem will diligently adhere to this requirement, ensuring that the specified royalty fees are paid accordingly.