If an NFT you created is listed on another marketplace and sells, that is what is referred to as a "secondary sale".
Foundation pays creators 10% royalties for all secondary sales, when possible.
It is important to note that royalties are not managed on-chain (on the blockchain), and for this reason can not be guaranteed, depending on where a secondary sale is made. Some marketplaces are explicitly choosing not to honor royalty payments, and in these cases, we are unable to pay out royalties.
Royalties are a hot topic in NFTs and we implore all creators and collectors to acquaint themselves with the discussion.
Royalty payments for all OpenSea secondary sales of NFTs minted to the Foundation shared contract (before Collections) have been temporarily paused.
Please read on to learn why this is the case, if and how your NFTs can still qualify for royalty payments, and more important details about OpenSea royalties.
- Foundation previously manually paid out OpenSea royalty payments because OS does not currently use EIP-2981 for on-chain payments. We can not support this manual process any longer.
- If and when OpenSea implements the EIP-2981 standard, all royalties will be paid out as normal.
- We do our best to support royalties for all marketplaces, but are constrained if marketplaces do not meet existing on-chain standards.
- OpenSea requires users to Set Creator Earnings in order to receive royalties on secondary sales.
- If you minted works to your own contract, aka “Collection”, you can turn royalties on by following OpenSea’s instructions.
- If your works were minted before Collections — to the shared Foundation contract — royalties will no longer be supported at this time.
- Final payouts were issued on 06/22/2022.
We urge you to contact OpenSea and ask that they use EIP-2981 ASAP for all royalty payments going forward.