NFT royalties allow creators to earn a percentage (typically 5–10%) every time their NFT is resold on the secondary market. The concept was central to the NFT bull market of 2021–2022 — artists could earn ongoing income from appreciating work, not just the initial sale.
The reality in 2026 is more complicated.
How Royalties Were Originally Designed
Early NFT marketplaces (OpenSea, Magic Eden) enforced royalties at the application layer: they agreed to collect and pay royalty percentages as part of their platform rules.
This wasn't on-chain enforcement — it was a voluntary agreement by marketplaces. When new marketplaces launched with 0% royalties to attract traders, the system started breaking down.
The Royalty Wars (2022–2023)
Blur launched on Ethereum in 2022 with optional royalties and immediately captured significant NFT volume by attracting traders who wanted to keep the royalty cut.
Magic Eden followed on Solana, moving to optional royalties in late 2022 under competitive pressure.
Result: royalty payments dropped dramatically across both chains. Creators saw their ongoing income stream largely disappear for collections without on-chain enforcement.
On-Chain Royalty Enforcement in 2026
Solana: Metaplex Programmable NFTs (pNFTs)
Metaplex introduced pNFTs — programmable NFTs that enforce royalties at the protocol level through transfer restrictions. pNFTs can only be transferred via authorized marketplaces that agree to pay royalties. Unauthorized transfers are blocked by the smart contract.
Adoption has been mixed. Some major collections migrated to pNFT. Others remain as standard NFTs with optional royalties.
Ethereum: EIP-2981 and Operator Filter
EIP-2981 added a royalty standard to Ethereum NFTs. OpenSea's Operator Filter blocked marketplaces that didn't pay royalties from transferring filtered collections.
In 2024, OpenSea removed the Operator Filter requirement. On-chain enforcement remains inconsistent on EVM chains.
Current state (2026): Collections that launched with pNFT (Solana) or equivalent on-chain enforcement mechanisms do collect consistent royalties. Legacy collections generally don't.
What This Means for Creators
New collections: Build on pNFT (Solana) or use royalty-enforcement standards from the start. Accept that some marketplaces may not list your collection if they don't support the enforcement mechanism.
Existing collections: Migrating standard NFTs to pNFT is possible but complex and requires community buy-in. Most collections haven't migrated.
Revenue expectations: Don't plan a creator business around secondary royalties without on-chain enforcement. Treat royalties as a bonus, not a primary revenue model, unless you're launching with enforcement from day one.
What This Means for Collectors
- Check whether a collection enforces royalties before buying if you care about creator support
- pNFT collections may have slightly higher transfer costs
- Collections with royalty enforcement are generally limited to specific marketplaces (Tensor, Magic Eden for pNFTs)
The Collector/Creator Tension
Royalties create real tension:
- Creators: Ongoing royalties provide income aligned with collection success
- Traders: Royalties are a tax on every flip, reducing profit margins
High-royalty collections (10%+) face resistance from active traders who prefer 0% alternatives. The market has largely settled around 5% or less for collections that successfully enforce royalties.
Checking Royalties Before You Buy
On Solana: Check the collection page on Tensor or Magic Eden — royalty percentage is displayed. Look for "Programmable NFT" badge to confirm on-chain enforcement.
On Ethereum: Check the contract on OpenSea or Etherscan. EIP-2981 royalties are readable on-chain via the royaltyInfo() function.