How do Royalties work?

What is "Fixed Royalty" and how do royalties work?

Terminology: 


  • Fixed RoyaltyThe defined percentage of the NFT sale price that the original NFT creator receives. 
  • Initial sale – The first time an NFT is purchased on the Vatom Market.
  • Secondary Sale – When the first buyer re-sells an NFT on The Vatom Market.

How do Royalties Work?


  • NFT’s can be created so that each transaction includes royalties, allowing creators to be rewarded fairly for all of their work that they list online. 
  • Each time your NFT is sold and re-sold on the Vatom Market, royalties will be paid out to the creator through Stripe Connect. 
  • Up to what percentage of fixed royalties can the creator receive?
    • On the first sale, the creator receives 98% of the total sale price.
    • On Secondary sales, the creator will receive the fixed royalty percentage of the sale price, minus the Vatom Service fees entered on NFT creation in Studio. 
  • How do I set up royalties?
    • In Studio, when creating your NFT, input the % for the creator (yourself or someone else in your business) under “Fixed Royalties” 
  • Will I receive royalties for private transfers or gifts to others?
    • No, royalties are only earned on purchased transfers. If the item that was gifted is resold on the market, you will receive royalties. 
  • If I sent an NFT through my wallet, will I receive royalties as the creator of the NFT?

    • No, if you decide to send an NFT through the wallet, it will be sent as a gift. In this scenario, you will not receive royalties. If the receiver decides to resell the NFT and you (the creator) have royalties set up, you will make royalties on the resale.