Abstract
This article examines the role of resale royalties in maintaining decentralization in the NFT ecosystem and supporting financial sustainability for artists. Although resale royalties, also known as creator royalties, are widely valued by NFT artists, they have been frequently undermined by the centralized policies of large NFT marketplaces. These include zero-royalty policies that are driven by the competitive pressure to gain market share, where platforms allow buyers and sellers to bypass creator royalties. This behavior has led to a destructive race to the bottom and the overall erosion of resale royalties. To address this problem in the NFT market, this article proposes the adoption of Limit Break’s ERC721-C smart contract and the establishment of a collecting society, which would act on behalf of the artists to oversee the enforcement of their resale royalties. This proposal would ensure robust, on-chain royalty enforcement and allow for the ideals of decentralization to be implemented practically. This article presents a compelling framework for sustaining artists’ careers and preserving the integrity of the NFT market.
Recommended Citation
Katelyn Holcomb,
THE PARADOXICAL SOLUTION TO ENFORCE RESALE ROYALTIES AND KEEP THE NFT MARKET DECENTRALIZED,
20 Wash. J. L. Tech. & Arts
(2025).
Available at:
https://digitalcommons.law.uw.edu/wjlta/vol20/iss1/3
Included in
Computer Law Commons, Contracts Commons, Entertainment, Arts, and Sports Law Commons, Intellectual Property Law Commons, Internet Law Commons
