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The current state of NFT royalty is broken.
Royalties were a tool for artists to contract services of art collectors, distributors, etc while ensuring they share in the profit of their work. This is also why royalties were only paid if the artwork sold above a certain price, and there was often a cap on the amount or time-duration for which artists could claim royalties. Something that’s shockingly missing from current NFT royalties.
Today, if you sell for less than your mint price you are still required to pay royalties - no seller would be happy doing this.
Royalties should be on gains and not losses
Just like capital gains are taxed and (most) losses are offset against your tax bill, the same can apply to royalties.
There is a need for a tool to track and manage the payment of royalties on NFTs. The tool would be able to identify when an NFT is sold and calculate the appropriate amount of royalties that are due based on the terms of the contract. The tool would then facilitate the payment of the royalties to the appropriate parties.
The tool could be integrated into an NFT marketplace like Magic Eden or used as a standalone application.
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