A DEEP DIVE INTO NFT ROYALTIES

Summary from the TLDR Crypto newsletter

NFT royalties, crucial for ensuring creators get paid for secondary sales, face challenges as they have never been enforced onchain. It is difficult to distinguish sales from other transfers like gifts. New designs that balance strict royalty enforcement and the flexibility of NFT interactions are being explored to address this, with innovative approaches such as incentive mechanisms and staking models being proposed to encourage respect for royalties without compromising composability.