Top 10 NFT Marketplaces Support Creator Royalty
Creator Royalty: Whether you like them or not, you can’t deny that they are a major draw for artists who want to use their craft to make a living on the blockchain. Creators get paid royalties every time one of their works changes hands through one of the many NFT marketplaces on the blockchain. This makes it possible for many people in Web3 to live from project to project, regardless of their status.
But in 2022, creator royalties were criticised. The decisions of major NFT marketplaces shook up the established Web3 royalty system and showed that not everyone was on the same page. This became a major point of contention in the NFT space. As more important people joined the debate, the question arose: Where do the major NFT marketplaces stand on this issue? These are the places that make it possible to trade NFTs in the first place.
We made this guide as a quick way to look up where the top NFT marketplaces stand on creator royalties. We did this to answer the question and to make it easier for users to find information about marketplace minting policies and fee structures.
Platforms that do pay out royalties to creators
Duncan and Griffin Cock Foster started Nifty Gateway in 2018 as a “digital art online auction platform” for NFTs. The platform is now run by Eddie Ma (technical leader) and Tara Harris (leader for non-tech) after the Cock-Foster brothers left in early 2023. The platform is owned by the big crypto-exchange Gemini.
Even though Nifty Gateway has some of the highest marketplace fees, creator royalties are still paid on the platform. According to the Nifty Gateway help section, the company thinks that “secondary market fees are part of what makes NFTs special.” It has royalties that can be enforced at the platform level, and it also respects the royalties that creators set on the blockchain.
AtomicHub is a place where you can create, trade, buy, and sell NFTs on the Wax blockchain all in one place. AtomicHub, which will come out in June 2020, is an interface for the NFT standard AtomicAssets. It was made by the blockchain tech company Pink.gg.
Thanks to the Atomic Asset standard, creator royalties are paid on the platform and enforced at the contract level, just like on other WAX marketplaces.
Rarible is an NFT marketplace based in Los Angeles that opened in November 2019. Rarible is thought to be one of the best places to buy and sell NFTs (especially Ethereum-based collectibles) because it has been around for a long time and has a lot of different kinds of NFTs.
The Rarible DAO runs the platform, and the governance token $RARI is used to back it up. At the moment, the platform pays creator royalties. Like other Ethereum-based marketplaces, Rarible pays royalties on-chain and lets users set royalties at the platform level.
You can always hard code the royalty within the transferTo function if you had to. Maybe more NFT creators will be incentivized to look under the hood and dig into their code rather than using the boilerplate contracts from OS and Rarible.
— Demosthenes | demosthenes.eth (@kwiledirects) July 9, 2022
SuperRare is one of the NFT ecosystem’s oldest and most well-known marketplaces. The marketplace, which opened in the spring of 2018, is being marketed as “Instagram meets Christie’s,” and it is currently the most popular curated NFT platform. At the moment, the platform pays the creator royalties.
Even though the platform is only open to people who have been invited and takes a big 15 percent cut of the final sale price for all primary sales, a 10 percent royalty is automatically set aside and paid to creators for all secondary sales. SuperRare stands out from its competitors because it gives collectors a chance to get benefits based on royalties.
Foundation is a marketplace that wants to help build a new creative economy using NFTs. Foundation will start in February 2021 and is only open to creators who have been invited. Like SuperRare, it will be a 1/1 auction.
Foundation takes 5% off the final sale price of new and used items, which is much more than most other marketplaces. But even so, creator royalties are still respected on the platform, and creators get a 10% royalty on all secondary sales.
Objkt is the most popular and biggest market on the Tezos blockchain. When it comes to Tezos NFTs, the platform is often called the OpenSea of Tezos. It will launch in early 2021 and will host everything from JPEGs to videos and songs. Creator royalties are respected on the platform, and, like other marketplaces, artists can set how much they want to charge.
Blur is an NFT marketplace that was made by Pacman, a mysterious Web3 developer. Blur was first released in October 2022 and got a lot of support and investments from big names in the NFT space. It was said to be one of the fastest places to trade and collect NFTs on Ethereum.
At the moment, the filter registry is how the platform pays creator royalties. Also, Blur started charging a minimum royalty of 0.5 percent on immutable collections that can’t use the filter registry at the start of 2023. The percentage is also set to go up by 0.5 percent over time. This can be changed based on how the Blur developers see how each increase affects the percentage.
Gem is an NFT aggregator (not quite a marketplace) that was released in January 2022. It lets users sell NFTs in batches, which saves them money on gas fees. After sexual misconduct claims were made against the co-founder of the platform, OpenSea bought it. The platform still works the same way, and creator royalties are still paid on it, even though it is now part of the OpenSea NFT ecosystem.
X2Y2 is an NFT marketplace that opened in January 2022 with the goal of building a truly decentralised NFT market and giving it back to the larger NFT community. As one of the first marketplaces to stop paying creators royalties, the platform became a prominent voice in the debate against royalties. However, a few months later, it changed its mind and started paying and enforcing royalties on all collections.
NFTs have taken the world by storm, and creators of all kinds are cashing in on the growing demand for unique digital collectibles. A great step in the right direction is that many NFT marketplaces have added “creator share” features that pay creators a percentage of sales that come after. But this feature is only built into the applications, so as soon as the NFT leaves the marketplace where it was made, the people who made it will never get paid for it again.
Introducing Tatum NF(royal)Ts, the first NFTs with built-in royalty payment functionality, so creators get paid every time they are transferred.
— Tatum (@tatum_io) May 3, 2021
Tatum NFTs were made just for this reason. By adding creator royalty-payment functionality to the blockchain, we make it possible for creators to get paid every time their NFT is transferred for as long as it exists. The application-level creator shares apply as long as it’s still in the market where it was made. Even if it leaves, the built-in mechanism for paying royalties to the author will pay out every time it changes hands.