Let’s say you’re a digital artist, a music producer, a designer, or a content creator. You spend hours creating a valuable piece—an artwork, a beat, an ebook, or a game skin. You sell it once and get paid.
Imagine someone else resells that same work for a much higher price, and you get nothing. This has been the norm for digital creators for years.
But now, blockchain technology has made something else possible: crypto royalties.
Introduction:
Crypto royalties enable creators to earn a portion of every resale of their digital work. Once set up, the system runs on autopilot—delivering royalties to your crypto wallet without any manual involvement. It’s a powerful model for anyone looking to build passive income streams online in 2025 and beyond.
What are crypto royalties?
Crypto royalties are recurring payments made to a creator every time their digital asset is resold on a blockchain-based platform. These payments are not issued manually, but through smart contracts—self-executing pieces of code embedded within digital assets like NFTs (Non-Fungible Tokens).
For example, an artist can create an NFT of a digital painting and set a 10% royalty on future resales. Whenever the NFT is sold again, 10% of the transaction value is automatically transferred to the artist’s wallet. No platform approvals or legal processes are required.
This mechanism ensures perpetual revenue for original creators and eliminates dependence on intermediaries.
How do crypto royalties work?
Crypto royalties operate through smart contracts coded into NFTs. Here’s how the full lifecycle works:
1. Creation and tokenization
The creator uploads a digital file (artwork, music, video, etc.) to an NFT platform like OpenSea, Rarible, or Zora. During the minting process, they specify the royalty percentage they want to receive from all future sales.
2. Initial sale
The digital asset is sold to the first buyer. The creator earns revenue from this transaction, just like a normal sale.
3. Secondary sales and automation
When the buyer resells the asset on a compatible marketplace, the smart contract triggers and automatically sends the specified royalty percentage to the original creator’s crypto wallet.
4. Ongoing royalties
Every time the asset is sold again, the process repeats. This allows the creator to earn income from each resale, creating a recurring revenue model.
The entire system runs without middlemen, is recorded transparently on the blockchain, and executes without the need for trust between parties.
Why crypto royalties matter for online income?
Crypto royalties are reshaping how digital work is monetized. Here are several reasons why they are ideal for individuals looking to earn money online:
Automated earnings without ongoing effort
Once set up, creators continue to earn revenue from their past work—without needing to create or sell something new each time. It’s a genuine form of passive income.
Control and transparency
Creators define the royalty terms themselves. All transactions are publicly recorded on the blockchain, ensuring fair and tamper-proof distribution.
Elimination of middlemen
Traditional royalties often go through agents, publishers, and platforms that take a large percentage. With crypto royalties, creators receive payments directly, reducing fees and increasing take-home earnings.
Scalability
Digital assets can be bought, sold, and traded globally. As your audience grows, so do your chances of additional resale earnings.
Who can benefit from crypto royalties?
This model is particularly valuable for individuals and professionals who deal in digital assets or intellectual property. Some common profiles include:
Digital artists and illustrators
They can mint original artworks as NFTs and earn recurring royalties from every resale across collector markets.
Musicians and producers
Music tracks and sound effects can be tokenized, allowing musicians to profit from both primary sales and fan-driven resales.
Developers and designers
Those who create website themes, UI kits, or in-game assets can integrate royalty models into their digital products.
Writers and content creators
Writers can release tokenized editions of their articles, guides, or books, earning royalties from each subsequent sale or transfer.
Photographers and filmmakers
They can license visual content as NFTs with built-in royalties and protect ownership without complex licensing structures.
How to start earning with crypto royalties
Here is a step-by-step guide to help you get started:
1. Set up a crypto wallet
Use a popular and secure wallet like MetaMask or Trust Wallet. This will be where you receive your royalty payments.
2. Choose an NFT platform
Select a marketplace that supports royalty enforcement. OpenSea, Rarible, Zora, Foundation, and Mintable are among the leading options.
3. Mint your digital asset
Upload your file, fill out the metadata, and set the royalty percentage—typically between 5% to 15%.
4. List your NFT for sale
Set a fixed price or auction it. Promote the listing via social media, Discord, or relevant online communities.
5. Track earnings and manage your wallet
As your NFT gets resold, your royalties will be deposited automatically. You can reinvest, withdraw, or convert the funds as needed.
How to invest in crypto tech royalties
You don’t have to be a creator to earn from crypto royalties. You can also invest in royalty-generating assets or platforms that share royalties with holders. Here’s how:
1. Buy NFTs that pay holder royalties
Some NFT collections distribute a portion of marketplace fees or profits back to holders. These projects often list royalty-sharing in their whitepapers.
2. Stake NFTs for rewards
Certain ecosystems allow NFT staking, where you earn rewards (including royalties) for locking your NFTs on the platform.
3. Invest in tokenized royalty funds
New protocols are emerging that tokenize music rights, video licensing, or publishing royalties. By buying into these tokens, you can earn a share of the ongoing income they generate.
4. Buy governance tokens in royalty platforms
Some NFT marketplaces or royalty-enforcing platforms distribute a portion of their revenue to token holders. By holding governance tokens, you gain exposure to the platform’s earnings, including creator royalties.
5. Diversify across sectors
Invest in royalty-backed assets across music, film, art, and publishing. The more diverse your holdings, the more consistent your returns may be across market cycles.
Important: Always research thoroughly. Look into the asset’s resale history, smart contract details, and the reputation of the platform or project before investing.
Challenges and what to watch out for
Despite their promise, crypto royalties come with a few limitations and evolving standards:
- Not all marketplaces enforce royalties equally. Some allow users to bypass fees or trade off-chain.
- There is no universal royalty protocol yet. Ethereum’s ERC-2981 is gaining traction, but enforcement still varies.
- Legal gray areas remain. In some regions, crypto-based royalties are not legally recognized or taxed ambiguously.
- Volatility affects resale activity. If the crypto or NFT market slows, royalty payouts may decline.
Conclusion: Build a smarter income stream in the creator economy
In a world where content is endlessly copied, shared, and traded, crypto royalties offer a powerful solution for creators and investors alike.
For creators, it means turning every resale into a revenue opportunity. For investors, it means earning returns from digital intellectual property.
Whether you’re minting your first NFT, building a digital brand, or diversifying your income streams, crypto royalties let your work—or your investments—pay you back over time.
The tools are ready. The market is growing. The question is: Will you start building your royalty-powered income stream today?
