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On this page
  • Creators Fee Enforcement (ERC-721C)
  • The Basics of NFT Royalties
  1. Features

Creator Fee Enforcement (NFT royalties)

Optionally force creators fee

PreviousTestnet deployNextDecentralized Governance & on-chain voting

Last updated 5 months ago

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. For example, some NFT marketplaces that do allow it are OpenSea and Magic Eden.

Enforced royalties allows you to enforce royalties on secondary sales of your NFTs. This means that you can set a percentage of the sale that you will recieve every time it is sold. This is a great way to ensure that 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, being thus 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

    • In this level, the caller must not be a blacklisted account or have a blacklisted code hash. There are no constraints on the receiver.

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

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

    • Receiver Constraints: None

    • In this level, the caller must be whitelisted, or the owner of the token. There are no constraints on the receiver.

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

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 referred to as ‘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 just 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 that you don't have to worry about anything. Just enable/disable enforcement in the dashboard.

Check more at

💵
https://nfts2me.com/#why-choose-us
Enforce creator royalties with our Royalty Enforcement Tool, ensuring Creator's Enforced Royalties are always honored.