Royalties
How to add Royalties to your project in the NMKR Studio Dashboard

Why add royalties?

Royalties are a great way to create extra revenue for you project by earning a fixed percentage of secondary-market trades that occur on participating marketplaces. Royalties are applied to a specific Policy ID/Wallet Address Pair and apply to all NFTs minted under that policy.
We're following the CIP-0027 on this, of which we will also be implementing it on the upcoming NMKR Marketplace. This CIP was developed in a wonderful collaborative effort by many of the biggest players in the CNFT space, see below for more details.
https://cips.cardano.org/cips/cip27#simplesummary
The CIP-0027 Standard for Royalties on Cardano (CIP)
CIP-0027 | Standardization of royalties by huths0lo · Pull Request #116 · cardano-foundation/CIPs
GitHub
The CIP-0027 Standard for Royalties on Cardano (GitHub)

Considerations

Desirability

It is worth noting that there are considerations to make before minting a Royalty Token.
As many people Mint NFTs with the aim to trade them later, any royalty is an instant additional cost to the owner who decides to trade it on a secondary market. This, combined with the secondary market fees can really add up and may deter people from trading or even Minting the NFTs at all.
On the flip side, some community members may see this as a positive thing, given that the potential continual revenue may be able to support the project over the long term.
Most of the larger CNFT secondary markets now support royalties, but this is something that does need to be implemented on the market level and could theoretically change in the future.

Permanent

Minting a royalty token essentially creates a permanent mapping on the blockchain. Once minted, you cannot:
  • Change the %
  • Change the recipient wallet address
  • Remove it completely
For this reason, it is important to consider the % and to ensure you keep your wallet seed phrase safe (which you should be doing anyway).

Fairness

Note - some secondary markets will ONLY be compatible with Royalties IF it was the first Token Minted related to the project.
If you do decide to mint a royalty token, then this should really be done before any NFTs are minted. This is for two reasons:
  • Community transparency
    • For the reasons above, you should inform you community about your plans to do this BEFORE they mint anything, otherwise you are retrospectively taking X % of the proceeds from their sales.
    • If this wasn't communicated before minting then that isn't really fair and may upset your community.
  • Better technical implementation
    • Secondary markets will perform slightly better (assuming they accept it) if the Royalty token is the first minted NFT in a Policy ID.

Set up

Requirements

  • A recipient Cardano Wallet Address that will receive the Royalties
  • Sufficient Mint Coupons (you will need to Buy Mints to pay to mint the Royalty Token)

How to

Note - Although it is possible to add royalties as long as the policy isn't locked, we recommend applying royalties BEFORE minting ANY NFTs.
You can set royalties for your NFTs from within the NFT Projects Dashboard as shown below in Step 1.
Step 1
Inside the Royalties section, use the slider to set your desired royalty level and enter in your Cardano address where the royalties will be paid to (step 2).
Step 2
Once you are happy, you can verify this IRREVERSIBLE decision.
Step 3
Please be aware that in order to complete this process you need to have 4.5 Cardano in your internal wallet as demonstrated below.
You may see this if you do not have enough funds.