💵Creator Fee Enforcement (NFT royalties)

Optionally force creators fee

Creators Fee Enforcement (ERC-721C)

Please note that not all marketplaces enforce creator fees (royalties). When this feature is activated, the smart contract will block interactions with marketplaces that do not support royalty enforcement, allowing only those that comply with the royalty fee policy.

Enforce creator royalties with our Royalty Enforcement Tool, ensuring Creator's Enforced Royalties are always honored.

Enforced royalties allow you to implement royalties on secondary sales of your NFTs. This means you can set a percentage of the sale you will receive every time it is sold. This is a great way to ensure creators are compensated fairly for their work.

However, please note that enforcing royalties may limit the liquidity of your NFTs, as some marketplaces may not support this feature and thus be unable to list/sell your NFTs.

When activating enforced royalties, you can set a Transfer Security Level and a List ID to restrict who can sell your NFTs.

These are the most common security levels for the transfer security level:

• Transfer Security Level 1 (recommended for those who wish to allow more flexibility):

  • Caller Constraints: None

  • Receiver Constraints: None

  • This is the most relaxed level of security, allowing any caller to initiate a token transfer to any receiver without any restrictions.

• Transfer Security Level 2:

  • Caller Constraints: OperatorBlacklistEnableOTC (Over-the-counter)

  • Receiver Constraints: None

  • At this level, the caller must not be a blacklisted account or have a blacklisted code hash. The receiver is not constrained.

• Transfer Security Level 3 (recommended to ensure royalties, more restrictive):

  • Caller Constraints: OperatorWhitelistEnableOTC (Over-the-counter)

  • Receiver Constraints: None

  • At this level, the caller must be whitelisted or the owner of the token. The receiver is not constrained.

For example, some chains where this mechanism works include Base, Polygon, ApeChain, Arbitrum, Optimism, Avalanche, Blast, Zora, SEI, Kaia, and others..

The Basics of NFT Royalties

Later, Bob resells that NFT to Charlie for 5Ξ in a secondary sale transaction on OpenSea.

Because Alice set her royalties to 10% on OpenSea, she receives 0.5Ξ from the exchange.

If Alice hadn’t set her creator fee (sometimes called ‘royalties’ / 'royalty') parameters and OpenSea didn’t use this system, she wouldn’t have automatically earned 0.5Ξ. It’d be up to Bob to manually send that payment, and in most cases, that volunteering wouldn’t happen.

This has led to cases of NFT royalties not being honoured when NFTs minted on one platform are sold on another.

Why are things like this? Because there wasn’t a great way to enforce NFT royalties at the smart contract level until now.

We are doing all this for you, so you don't have to worry. Just enable/disable enforcement in the dashboard.