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## Get ready to transform your digital business with Royalty Reporting on Aspen 

We're beyond excited to introduce Royalty Reporting for Creators on Aspen. This innovative tool gives you access to crucial information about the royalty payments of your collectors, empowering you to make informed decisions about content releases, membership offers, and community management.&nbsp;

Let's dive into how Royalty Reporting works on Aspen and why it's a must-have tool for taking your digital business to new heights.

<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="2160" height="480" src="/images/blog/blog2/Banner_large_no-cta.png" /></a>

### **The Magic of Royalty Reporting on Aspen**

Royalty Reporting is an easy-to-download file available exclusively for Aspen creators. It's your key to understanding which collectors have (and haven't) paid their royalties. With this valuable intel, you can:

1\. Launch gated content only for due-paying members, making sure your most devoted fans enjoy exclusive access to your latest masterpieces.

**Aspen Tip:** By offering premium content to due-paying members, you can encourage more collectors to pay royalties, thus increasing your overall revenue.

2\. Create subscription memberships just for royalty-paying collectors, nurturing a tight-knit community that truly appreciates your work.

<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="320" height="320" src="/images/blog/blog2/Banner_small.png" /></a>

**Aspen Tip:** Subscription memberships can generate a steady stream of income from collectors who are more likely to engage with your content and make additional purchases.

3\. Offer NFT utility based on royalty payment status, giving a little extra love to those who consistently support your digital ventures.

**Aspen Tip:** Enhancing the utility of your NFTs for due-paying collectors can create a stronger incentive for collectors to pay royalties, increasing the overall value of your digital assets.

4\. Make data-driven decisions about your audience and community, optimizing your content and marketing efforts for maximum success.

**Aspen Tip:** By understanding your audience's preferences and payment behaviors, you can tailor your marketing campaigns and content releases to appeal to the right collectors, ultimately boosting your revenue.

<h3 class="align-right">Accessing Royalty Reports on Aspen: A Step-by-Step Guide</h3>

Ready to tap into the power of Royalty Reporting on Aspen? Here's how:

1\. Jump into Create Mode on the Aspen platform.

2\. Choose 'Royalties' from the left side menu.

3\. Once you're on the Royalties home page, click the 'Overview' tab.

4\. Hit the 'Download All' button to receive your royalties compliance report, complete with wallet addresses of all due-paying collectors.

And guess what? You can also download reports for individual collections. This level of detail lets you analyze the performance of specific collections and better understand what makes your audience tick.

Royalty Reporting on Aspen is a total game-changer for creators looking to level up their digital business. By providing priceless insights into the royalty payment habits of collectors, this feature enables you to make strategic decisions about content releases, membership offers, and community engagement.&nbsp;

So, what are you waiting for?&nbsp;

Get started with Aspen’s [Royalty Toolkit](/royalties) today and unleash the full potential of your digital footprint.

<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="2160" height="792" src="/images/blog/blog2/Banner_large_cta.png" /></a>

<h2>Get ready to transform your digital business with Royalty Reporting on Aspen </h2>
We're beyond excited to introduce Royalty Reporting for Creators on Aspen. This innovative tool gives you access to crucial information about the royalty payments of your collectors, empowering you to make informed decisions about content releases, membership offers, and community management. 
Let's dive into how Royalty Reporting works on Aspen and why it's a must-have tool for taking your digital business to new heights.
<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="2160" height="480" src="/images/blog/blog2/Banner_large_no-cta.png" /></a>
<h3>The Magic of Royalty Reporting on Aspen</h3>
Royalty Reporting is an easy-to-download file available exclusively for Aspen creators. It's your key to understanding which collectors have (and haven't) paid their royalties. With this valuable intel, you can:
1. Launch gated content only for due-paying members, making sure your most devoted fans enjoy exclusive access to your latest masterpieces.
Aspen Tip: By offering premium content to due-paying members, you can encourage more collectors to pay royalties, thus increasing your overall revenue.
2. Create subscription memberships just for royalty-paying collectors, nurturing a tight-knit community that truly appreciates your work.
<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="320" height="320" src="/images/blog/blog2/Banner_small.png" /></a>
Aspen Tip: Subscription memberships can generate a steady stream of income from collectors who are more likely to engage with your content and make additional purchases.
3. Offer NFT utility based on royalty payment status, giving a little extra love to those who consistently support your digital ventures.
Aspen Tip: Enhancing the utility of your NFTs for due-paying collectors can create a stronger incentive for collectors to pay royalties, increasing the overall value of your digital assets.
4. Make data-driven decisions about your audience and community, optimizing your content and marketing efforts for maximum success.
Aspen Tip: By understanding your audience's preferences and payment behaviors, you can tailor your marketing campaigns and content releases to appeal to the right collectors, ultimately boosting your revenue.
<h3 class="align-right">Accessing Royalty Reports on Aspen: A Step-by-Step Guide</h3>
Ready to tap into the power of Royalty Reporting on Aspen? Here's how:
1. Jump into Create Mode on the Aspen platform.
2. Choose 'Royalties' from the left side menu.
3. Once you're on the Royalties home page, click the 'Overview' tab.
4. Hit the 'Download All' button to receive your royalties compliance report, complete with wallet addresses of all due-paying collectors.
And guess what? You can also download reports for individual collections. This level of detail lets you analyze the performance of specific collections and better understand what makes your audience tick.
Royalty Reporting on Aspen is a total game-changer for creators looking to level up their digital business. By providing priceless insights into the royalty payment habits of collectors, this feature enables you to make strategic decisions about content releases, membership offers, and community engagement. 
So, what are you waiting for? 
Get started with Aspen’s <a href="/royalties">Royalty Toolkit</a> today and unleash the full potential of your digital footprint.
<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="2160" height="792" src="/images/blog/blog2/Banner_large_cta.png" /></a>

Unlock the Power to Grow Your Digital Business

Say Hello to Royalty Reporting on Aspen

## Aspen's 3 Step Royalty Solution for Creators

 In the rapidly evolving world of web3, Creators are forging new paths and reshaping the way we consume and create content.

It's crucial to ensure that the rewards and benefits of the digital economy reach Creators fairly, while empowering them to grow their revenue and expand their brand.

In support, we're thrilled to introduce our 3-step Creator-centric Royalty Solution, designed to provide Creators with the support, tools, and insights they need to thrive in the NFT space — rolled up into an easy-to-use, no-code *and* Collector-friendly toolkit.

<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="2160" height="480" src="/images/blog/blog2/Banner_large_no-cta.png" /></a>

As we discussed in our previous blog post,[ Why Web3 Creators Should Care About a Royalties Solution](/blog/why-web3-creators-should-care-about-a-royalties-solution), royalties are an essential aspect of web3 Creators' revenue streams. Our innovative approach guarantees that artists receive the compensation they deserve while unlocking their full potential for brand growth.

Let's dive into our 3-step solution and explore how each component contributes to increased revenue, brand expansion and marketing firepower for web3 Creators.

### **Royalty Paybacks: Simplifying Dues for Collectors**

Our Royalty Paybacks feature streamlines the royalty payment process, making it easier for Collectors to support their favorite Creators. By simplifying the payment process, we encourage Collectors to acquire more NFTs from the creators they love, boosting the Creators' income and allowing them to focus on producing high-quality content. Additionally, the transparent payment system fosters trust and loyalty between Creators and their fans, further expanding your brand or project reach.

### **Royalty Appeals: Fair and Transparent Resolution**

Swore you paid royalties from a different wallet? No problem. The Royalty Appeals process ensures that Creators receive their rightful compensation while maintaining a fair and transparent relationship with Collectors.

By allowing Creators to review and resolve appeals based on on-chain evidence, we empower them to maintain control over their income and brand reputation. As Creators' membership lists grow, their influence and brand visibility in the web3 community are amplified, ultimately resulting in increased revenue opportunities through collaborations, sponsorships, and other partnerships.

<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="320" height="320" src="/images/blog/blog2/Banner_small.png" /></a>

Further, this appeals workflow connects Collectors directly with Creators, maintaining peer-to-peer communications without the interference of an intermediary while still providing Collectors an opportunity to remedy any error in royalty reporting.

### **Royalty Reporting: Empowering Creators with Data**

Our Royalty Reporting feature provides Creators with valuable insights into their earnings, enabling them to make informed decisions about their content and marketing strategies. By understanding which Collectors have paid royalties and which have not, Creators can target their efforts towards developing gated content and exclusive experiences for their most loyal supporters. This tailored approach incentivizes Collectors to continue supporting the Creator and enhances the Creator's brand image as one that values and rewards its fan base.

The 3-step Creator-centric Royalty Solution is not only a powerful revenue-generating tool but also a game-changer for web3 artists seeking to elevate their brand and foster deeper connections with their audience.

By leveraging the right tools to handle royalties, deliver exclusive content, and reward devoted supporters, Creators can establish a magnetic brand presence that captivates their fan base in the web3 world.

What sets this approach apart is the transformation of traditional "collectors" into committed "members," unlocking a fresh approach to web3 revenue generation. This metamorphosis cultivates a strong sense of community and belonging, inspiring members to invest in the Creator's work and the compelling narrative behind it. This paves the way for inventive monetization strategies, including memberships, bespoke events, and personalized experiences that cater to the desires and expectations of the audience.

Embracing a 3-step Creator-centric Royalty Solution means championing a flourishing ecosystem for web3 Creators. By embodying this commitment, Creators pave the way for a fairer and more sustainable digital economy.

Unleash the untapped potential of your creative brand in the web3 domain by learning more about Aspen's [Royalty Toolkit](/royalties). Ready to level up? Import your existing collection into a [Storefront](/storefront) and start today!

<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img src="https://aspenft.io/images/blog/blog2/Banner_large_cta.png" /></a>

<h2>Aspen's 3 Step Royalty Solution for Creators</h2>
 In the rapidly evolving world of web3, Creators are forging new paths and reshaping the way we consume and create content.
It's crucial to ensure that the rewards and benefits of the digital economy reach Creators fairly, while empowering them to grow their revenue and expand their brand.
In support, we're thrilled to introduce our 3-step Creator-centric Royalty Solution, designed to provide Creators with the support, tools, and insights they need to thrive in the NFT space — rolled up into an easy-to-use, no-code and Collector-friendly toolkit.
<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="2160" height="480" src="/images/blog/blog2/Banner_large_no-cta.png" /></a>
As we discussed in our previous blog post,<a href="/blog/why-web3-creators-should-care-about-a-royalties-solution"> Why Web3 Creators Should Care About a Royalties Solution</a>, royalties are an essential aspect of web3 Creators' revenue streams. Our innovative approach guarantees that artists receive the compensation they deserve while unlocking their full potential for brand growth.
Let's dive into our 3-step solution and explore how each component contributes to increased revenue, brand expansion and marketing firepower for web3 Creators.
<h3>Royalty Paybacks: Simplifying Dues for Collectors</h3>
Our Royalty Paybacks feature streamlines the royalty payment process, making it easier for Collectors to support their favorite Creators. By simplifying the payment process, we encourage Collectors to acquire more NFTs from the creators they love, boosting the Creators' income and allowing them to focus on producing high-quality content. Additionally, the transparent payment system fosters trust and loyalty between Creators and their fans, further expanding your brand or project reach.
<h3>Royalty Appeals: Fair and Transparent Resolution</h3>
Swore you paid royalties from a different wallet? No problem. The Royalty Appeals process ensures that Creators receive their rightful compensation while maintaining a fair and transparent relationship with Collectors.
By allowing Creators to review and resolve appeals based on on-chain evidence, we empower them to maintain control over their income and brand reputation. As Creators' membership lists grow, their influence and brand visibility in the web3 community are amplified, ultimately resulting in increased revenue opportunities through collaborations, sponsorships, and other partnerships.
<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="320" height="320" src="/images/blog/blog2/Banner_small.png" /></a>
Further, this appeals workflow connects Collectors directly with Creators, maintaining peer-to-peer communications without the interference of an intermediary while still providing Collectors an opportunity to remedy any error in royalty reporting.
<h3>Royalty Reporting: Empowering Creators with Data</h3>
Our Royalty Reporting feature provides Creators with valuable insights into their earnings, enabling them to make informed decisions about their content and marketing strategies. By understanding which Collectors have paid royalties and which have not, Creators can target their efforts towards developing gated content and exclusive experiences for their most loyal supporters. This tailored approach incentivizes Collectors to continue supporting the Creator and enhances the Creator's brand image as one that values and rewards its fan base.
The 3-step Creator-centric Royalty Solution is not only a powerful revenue-generating tool but also a game-changer for web3 artists seeking to elevate their brand and foster deeper connections with their audience.
By leveraging the right tools to handle royalties, deliver exclusive content, and reward devoted supporters, Creators can establish a magnetic brand presence that captivates their fan base in the web3 world.
What sets this approach apart is the transformation of traditional &quot;collectors&quot; into committed &quot;members,&quot; unlocking a fresh approach to web3 revenue generation. This metamorphosis cultivates a strong sense of community and belonging, inspiring members to invest in the Creator's work and the compelling narrative behind it. This paves the way for inventive monetization strategies, including memberships, bespoke events, and personalized experiences that cater to the desires and expectations of the audience.
Embracing a 3-step Creator-centric Royalty Solution means championing a flourishing ecosystem for web3 Creators. By embodying this commitment, Creators pave the way for a fairer and more sustainable digital economy.
Unleash the untapped potential of your creative brand in the web3 domain by learning more about Aspen's <a href="/royalties">Royalty Toolkit</a>. Ready to level up? Import your existing collection into a <a href="/storefront">Storefront</a> and start today!
<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img src="https://aspenft.io/images/blog/blog2/Banner_large_cta.png" /></a>

A Creator-Centric Approach to Unlocking Revenue and Brand Growth in Web3

## NFT Royalties: Uncovering the Hidden Revenue in the Blockchain World

The blockchain universe, with its innovative NFTs, has ushered in a new era for creators to profit from their work. A standout feature of this digital transformation is the advent of NFT royalties. Unlike conventional royalties that are usually disbursed to creators via intricate legal contracts, NFT royalties are regulated by smart contracts on blockchain networks. This guarantees that creators earn a set percentage of the revenue each time their work is resold in the secondary market.

<a target="_blank" href="https://app.aspenft.io/"><img src="https://aspenft.io/images/blog/blog2/Banner_large_no-cta.png" /></a>

### The Evolution in Marketplace Focus: Traders Over Creators

In recent times, the most active NFT marketplaces have experienced a significant shift in their marketing and user experience strategies, focusing more on traders rather than creators.

This trend is evident in various marketplaces, including Blur, X2Y2, and even OpenSea. These platforms prioritize facilitating NFT transactions over nurturing the creative process and ensuring artists are fairly compensated for their work.

Regrettably, this trader-centric approach has led to an overemphasis on transactions, sidelining the creators whose works are the backbone of these transactions.

With the most frequented marketplaces overlooking the significance of royalty payments, artists are deprived of their fair share of profits from their work's resale, thereby hindering their financial prosperity in the Web3 world.

### The Impact of Royalty Losses in 2023

In the first quarter of 2023 alone, the top 10 NFT projects lost an astounding $82.9 million due to unpaid royalties. To illustrate the magnitude of this figure, consider what else could be achieved with such funds:

1. Seed funding for 82 startups, fostering innovation and business growth.
2. Scholarships for over 2,000 students to pursue a four-year college education.
3. Financing the production of several independent films, amplifying underrepresented voices.
4. Supporting the creation and upkeep of 276 public art installations worldwide.
5. Funding art education programs in every public elementary school in California.
6. Providing one month of free gallery space for 41,450 artists in the U.S.
7. Buying coffee for every Brooklyn resident for two weeks.
8. Clearing the student loan debt of 2,470 millennials.
9. Establishing 184 solar farms, significantly reducing carbon emissions.
10. Purchasing 18,450,970 10-piece chicken nugget meals from McDonalds.

#####

<a target="_blank" href="https://app.aspenft.io/"><img width="320" height="320" src="/images/blog/blog2/Banner_small.png" /></a>

### The Future of NFTs and Creators

The NFT landscape was initially conceived as a decentralized ecosystem that would enable creators to monetize their work and engage with a global audience. However, the recent shift in marketplace focus towards traders over creators has led to a substantial revenue loss for artists.

Without creators, the NFT ecosystem would lose its primary source of value and innovation. Creators are the ones who produce the digital assets that are sold as NFTs, and without them, there would be no unique or original content to mint or trade. This would result in a severe reduction of demand for NFTs and, in turn, the value of the entire market would decline.

Moreover, without creators, the NFT space would lose its cultural and artistic significance. The NFT market has already started to gain mainstream recognition as a platform for artists and creatives to showcase their work and connect with audiences. If creators feel that they are not receiving fair compensation for their work, they may be less likely to participate in the NFT ecosystem, leading to a decrease in the cultural and artistic significance of the space.

Finally, the lack of creator participation in theNFT ecosystem could stifle innovation and technological advancement. Creators are often the first to experiment with new technologies and push the boundaries of what is possible. If they feel that their work is undervalued or under-compensated, they may be less likely to innovate and experiment with new technologies, leading to a stagnation of the NFT market.

### The Threat to the NFT Ecosystem and the Way Forward

From our perspective, the shift in NFT marketplace focus towards traders over creators threatens the very foundation of the NFT ecosystem. The loss of substantial royalty revenue not only hinders artists' financial success but also jeopardizes the growth, innovation, and cultural significance of the entire space.

But this is just the beginning!

To ensure the longevity and vitality of the NFT market, we must incentivize innovation over marketplaces protecting their own bottom line to weather the market downturn — limiting both possibilities and protections for the group most capable of pushing Web3 ahead: Creators.

Aspen is the new haven for Web3 Creators seeking to build and grow their revenue with industry-leading creation, marketing, and distribution tools.

Ready to stop the revenue drain? Discover our [Royalties Toolkit Now](/royalties).

<a target="_blank" href="https://app.aspenft.io/"><img src="https://aspenft.io/images/blog/blog2/Banner_large_cta.png" /></a>

<h2>NFT Royalties: Uncovering the Hidden Revenue in the Blockchain World</h2>
The blockchain universe, with its innovative NFTs, has ushered in a new era for creators to profit from their work. A standout feature of this digital transformation is the advent of NFT royalties. Unlike conventional royalties that are usually disbursed to creators via intricate legal contracts, NFT royalties are regulated by smart contracts on blockchain networks. This guarantees that creators earn a set percentage of the revenue each time their work is resold in the secondary market.
<a target="_blank" href="https://app.aspenft.io/"><img src="https://aspenft.io/images/blog/blog2/Banner_large_no-cta.png" /></a>
<h3>The Evolution in Marketplace Focus: Traders Over Creators</h3>
In recent times, the most active NFT marketplaces have experienced a significant shift in their marketing and user experience strategies, focusing more on traders rather than creators.
This trend is evident in various marketplaces, including Blur, X2Y2, and even OpenSea. These platforms prioritize facilitating NFT transactions over nurturing the creative process and ensuring artists are fairly compensated for their work.
Regrettably, this trader-centric approach has led to an overemphasis on transactions, sidelining the creators whose works are the backbone of these transactions.
With the most frequented marketplaces overlooking the significance of royalty payments, artists are deprived of their fair share of profits from their work's resale, thereby hindering their financial prosperity in the Web3 world.
<h3>The Impact of Royalty Losses in 2023</h3>
In the first quarter of 2023 alone, the top 10 NFT projects lost an astounding $82.9 million due to unpaid royalties. To illustrate the magnitude of this figure, consider what else could be achieved with such funds:
<ol>
<li>Seed funding for 82 startups, fostering innovation and business growth.</li>
<li>Scholarships for over 2,000 students to pursue a four-year college education.</li>
<li>Financing the production of several independent films, amplifying underrepresented voices.</li>
<li>Supporting the creation and upkeep of 276 public art installations worldwide.</li>
<li>Funding art education programs in every public elementary school in California.</li>
<li>Providing one month of free gallery space for 41,450 artists in the U.S.</li>
<li>Buying coffee for every Brooklyn resident for two weeks.</li>
<li>Clearing the student loan debt of 2,470 millennials.</li>
<li>Establishing 184 solar farms, significantly reducing carbon emissions.</li>
<li>Purchasing 18,450,970 10-piece chicken nugget meals from McDonalds.</li>
</ol>
<h5></h5>
<a target="_blank" href="https://app.aspenft.io/"><img width="320" height="320" src="/images/blog/blog2/Banner_small.png" /></a>
<h3>The Future of NFTs and Creators</h3>
The NFT landscape was initially conceived as a decentralized ecosystem that would enable creators to monetize their work and engage with a global audience. However, the recent shift in marketplace focus towards traders over creators has led to a substantial revenue loss for artists.
Without creators, the NFT ecosystem would lose its primary source of value and innovation. Creators are the ones who produce the digital assets that are sold as NFTs, and without them, there would be no unique or original content to mint or trade. This would result in a severe reduction of demand for NFTs and, in turn, the value of the entire market would decline.
Moreover, without creators, the NFT space would lose its cultural and artistic significance. The NFT market has already started to gain mainstream recognition as a platform for artists and creatives to showcase their work and connect with audiences. If creators feel that they are not receiving fair compensation for their work, they may be less likely to participate in the NFT ecosystem, leading to a decrease in the cultural and artistic significance of the space.
Finally, the lack of creator participation in theNFT ecosystem could stifle innovation and technological advancement. Creators are often the first to experiment with new technologies and push the boundaries of what is possible. If they feel that their work is undervalued or under-compensated, they may be less likely to innovate and experiment with new technologies, leading to a stagnation of the NFT market.
<h3>The Threat to the NFT Ecosystem and the Way Forward</h3>
From our perspective, the shift in NFT marketplace focus towards traders over creators threatens the very foundation of the NFT ecosystem. The loss of substantial royalty revenue not only hinders artists' financial success but also jeopardizes the growth, innovation, and cultural significance of the entire space.
But this is just the beginning!
To ensure the longevity and vitality of the NFT market, we must incentivize innovation over marketplaces protecting their own bottom line to weather the market downturn — limiting both possibilities and protections for the group most capable of pushing Web3 ahead: Creators.
Aspen is the new haven for Web3 Creators seeking to build and grow their revenue with industry-leading creation, marketing, and distribution tools.
Ready to stop the revenue drain? Discover our <a href="/royalties">Royalties Toolkit Now</a>.
<a target="_blank" href="https://app.aspenft.io/"><img src="https://aspenft.io/images/blog/blog2/Banner_large_cta.png" /></a>

Uncovering the Hidden Revenue in the Blockchain World

NFT Royalties

## Why Creators Should Care About a Royalties Solution

In the Web3-is-the-internet-you-own era, NFT royalties have become a critical aspect of the creator ecosystem. Ensuring a robust solution for NFT royalties is vital for artists to generate sustainable income from their creative pursuits.&nbsp;

But finding a solution hasn’t been easy.

The ongoing debate surrounding NFT royalties and emphasize the importance of finding a solution to protect the interests of web3 creators.

<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="2160" height="480" src="/images/blog/blog2/Banner_large_no-cta.png" /></a>

## **The NFT royalties conundrum**

As the web3 community continues to wrestle with the challenge of establishing a fair and effective NFT royalties solution, several points of contention have arisen.

1. Technical limitations: Enforcing royalties on-chain presents numerous technical obstacles. As highlighted by [The Block](https://www.theblock.co/post/178603/why-nft-royalties-are-almost-impossible-to-enforce-on-chain), these challenges include the ease with which users can bypass royalties by moving NFTs between wallets, and the lack of consensus on standardization across different blockchains and marketplaces.
2. Legal complexities: [CoinDesk](https://www.coindesk.com/layer2/2022/11/07/why-nft-artists-shouldnt-expect-royalties/) emphasized the legal intricacies surrounding NFT royalties. Intellectual property rights and enforcement mechanisms vary significantly between jurisdictions, making it challenging to establish a unified, global approach to royalties. But here’s the thing: code isn’t law.
3. Conflicting interests: [Decrypt](https://decrypt.co/107482/why-nft-creators-collectors-artist-royalties) underscored the differing perspectives among creators, collectors, and platforms. While creators seek fair compensation, collectors may be hesitant to accept royalties that could reduce their profits. Furthermore, platforms might resist implementing royalties due to the added complexity and potential impact on user experience.
4. Lack of standardization: The absence of an industry-wide standard for NFT royalties creates inconsistencies across platforms and complicates enforcement efforts. As a result, artists may struggle to navigate various royalty systems and secure their fair share of revenue.

## **Leading the Way to a Living Wage**

Digital artists are increasingly finding greater financial success through web3 platforms as NFT sales and royalties from secondary sales offer a more lucrative revenue stream compared to traditional web2 platforms.

<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="320" height="320" src="/images/blog/blog2/Banner_small.png" /></a>

A royalties solution is an essential step forward in ensuring that individuals are fairly compensated for their creative contributions.

Let's examine some telling statistics:

* In 2021, NFTs generated $3.9 billion for 22,400 web3 creators, resulting in an average revenue per creator of $174,000.

* Comparatively, Spotify paid $7 billion to 11 million artists, translating to a per capita income of $636.

* YouTube, the world's most popular video publishing platform, paid $15 billion to 37 million channels, equating to an average revenue of $405 per channel.

* Meanwhile, Meta Platforms (formerly Facebook) distributed $300 million to more than 2.9 billion users, averaging a meager $0.10 per user.

These figures indicate that NFTs are quickly becoming a far more effective means of monetizing creative work compared to established web2 platforms for generating income from intellectual properties.

By championing a robust royalties solution, web3 has the potential to pave the way for a living wage for digital artists and creators. This shift towards equitable compensation can not only attract more talent to the web3 space but also empower creators to focus on their creative endeavors and produce innovative, groundbreaking work.

## **Now What?**

The ongoing debate surrounding NFT royalties highlights the complexity of balancing creators' rights with the practicalities of enforcement and implementation. Nevertheless, it is crucial for web3 creators to actively participate in the discourse and advocate for a royalties solution that protects their interests and sustains the growth of the creator ecosystem.

By uniting in the pursuit of a fair and effective royalties framework, the web3 community can establish a solid foundation for the future of digital art, creativity, and innovation. In doing so, web3 creators will be better equipped to generate sustainable income, secure their intellectual property rights, and contribute to a thriving, equitable creative landscape.&nbsp;

Sounds good to us.

<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="2160" height="792" src="/images/blog/blog2/Banner_large_cta.png" /></a>

<h2>Why Creators Should Care About a Royalties Solution</h2>
In the Web3-is-the-internet-you-own era, NFT royalties have become a critical aspect of the creator ecosystem. Ensuring a robust solution for NFT royalties is vital for artists to generate sustainable income from their creative pursuits. 
But finding a solution hasn’t been easy.
The ongoing debate surrounding NFT royalties and emphasize the importance of finding a solution to protect the interests of web3 creators.
<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="2160" height="480" src="/images/blog/blog2/Banner_large_no-cta.png" /></a>
<h2>The NFT royalties conundrum</h2>
As the web3 community continues to wrestle with the challenge of establishing a fair and effective NFT royalties solution, several points of contention have arisen.
<ol>
<li>Technical limitations: Enforcing royalties on-chain presents numerous technical obstacles. As highlighted by <a href="https://www.theblock.co/post/178603/why-nft-royalties-are-almost-impossible-to-enforce-on-chain">The Block</a>, these challenges include the ease with which users can bypass royalties by moving NFTs between wallets, and the lack of consensus on standardization across different blockchains and marketplaces.</li>
<li>Legal complexities: <a href="https://www.coindesk.com/layer2/2022/11/07/why-nft-artists-shouldnt-expect-royalties/">CoinDesk</a> emphasized the legal intricacies surrounding NFT royalties. Intellectual property rights and enforcement mechanisms vary significantly between jurisdictions, making it challenging to establish a unified, global approach to royalties. But here’s the thing: code isn’t law.</li>
<li>Conflicting interests: <a href="https://decrypt.co/107482/why-nft-creators-collectors-artist-royalties">Decrypt</a> underscored the differing perspectives among creators, collectors, and platforms. While creators seek fair compensation, collectors may be hesitant to accept royalties that could reduce their profits. Furthermore, platforms might resist implementing royalties due to the added complexity and potential impact on user experience.</li>
<li>Lack of standardization: The absence of an industry-wide standard for NFT royalties creates inconsistencies across platforms and complicates enforcement efforts. As a result, artists may struggle to navigate various royalty systems and secure their fair share of revenue.</li>
</ol>
<h2>Leading the Way to a Living Wage</h2>
Digital artists are increasingly finding greater financial success through web3 platforms as NFT sales and royalties from secondary sales offer a more lucrative revenue stream compared to traditional web2 platforms.
<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="320" height="320" src="/images/blog/blog2/Banner_small.png" /></a>
A royalties solution is an essential step forward in ensuring that individuals are fairly compensated for their creative contributions.
Let's examine some telling statistics:
<ul>
<li>
In 2021, NFTs generated $3.9 billion for 22,400 web3 creators, resulting in an average revenue per creator of $174,000.
</li>
<li>
Comparatively, Spotify paid $7 billion to 11 million artists, translating to a per capita income of $636.
</li>
<li>
YouTube, the world's most popular video publishing platform, paid $15 billion to 37 million channels, equating to an average revenue of $405 per channel.
</li>
<li>
Meanwhile, Meta Platforms (formerly Facebook) distributed $300 million to more than 2.9 billion users, averaging a meager $0.10 per user.
</li>
</ul>
These figures indicate that NFTs are quickly becoming a far more effective means of monetizing creative work compared to established web2 platforms for generating income from intellectual properties.
By championing a robust royalties solution, web3 has the potential to pave the way for a living wage for digital artists and creators. This shift towards equitable compensation can not only attract more talent to the web3 space but also empower creators to focus on their creative endeavors and produce innovative, groundbreaking work.
<h2>Now What?</h2>
The ongoing debate surrounding NFT royalties highlights the complexity of balancing creators' rights with the practicalities of enforcement and implementation. Nevertheless, it is crucial for web3 creators to actively participate in the discourse and advocate for a royalties solution that protects their interests and sustains the growth of the creator ecosystem.
By uniting in the pursuit of a fair and effective royalties framework, the web3 community can establish a solid foundation for the future of digital art, creativity, and innovation. In doing so, web3 creators will be better equipped to generate sustainable income, secure their intellectual property rights, and contribute to a thriving, equitable creative landscape. 
Sounds good to us.
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Why Creators Should Care About a Royalties Solution

## What's The Fuss About Royalties?

The digitization of creative works has brought about a significant shift in how artists, musicians, and creators can earn a living. Royalties have long been the backbone of creative revenue, and with the advent of web3, the relationship between royalties and revenue is evolving in unprecedented ways.&nbsp;

Let's dive into this phenomenon and understand why protecting royalties is crucial for the web3 and creative community at large.

<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img src="https://aspenft.io/images/blog/blog2/Banner_large_no-cta.png" /></a>

### **Royalties in Context**

Royalties are payments made to artists or creators as compensation for the use or sale of their work. In the web2 era, royalties have played a vital role in ensuring fair compensation for creative endeavors. Some notable examples include Dolly Parton bringing in over U.S. $20 million in royalties alone from Whitney Houston’s 1992 cover of ‘I Will Always Love You’ and The Happy Birthday song generating over U.S. $50 million in royalties.

It’s not just the songs that get stuck in our head that are making money, either. In fact, authors wholly depend on royalties from their publishers and it’s how patent holders make a living from their inventions or filings.

These payments can be one-time, recurring, or a combination of both, providing a predictable and stable source of income for creators.

### **Royalties: A Roadmap for Creator Revenue in Web3**

As we transition to the decentralized world of web3, the concept of royalties is undergoing a transformation.&nbsp;

An important distinction to make is the difference between NFT royalties and traditional royalty payments. NFT royalties represent compensation to the original creator for each subsequent sale of their digital assets.

Utilizing smart contracts on blockchain networks, NFT royalty payments are seamlessly encoded into the very fabric of the digital asset. During the minting process, creators have the ability to specify the royalty percentage they wish to receive. Upon the completion of a secondary NFT sale, the smart contract allocates the predetermined percentage from the transaction to the creator as a royalty payment.

A prime illustration of the potential for passive income through NFT royalties can be found in Beeple's "Crossroads" NFT. The piece was resold on the secondary market for a [staggering $6.6 million](https://cointelegraph.com/news/beeple-nft-sells-for-record-6-6m-as-bidding-for-everydays-at-christie-s-hits-2-2m), with the artist receiving 10% of the transaction as a royalty payment. This example highlights the potency of NFT royalties as a monetization tool for various forms of art.

While blockchain technology and smart contracts have revolutionized the way royalties are managed, distributed, and tracked, ironically, there’s still quite a few speed bumps when it comes to them as a reliable revenue source for web3 enthusiasts.&nbsp;&nbsp;

### **How Optional Royalties Impact Creators' Ability to Generate Revenue**

At the end of last year, NFT marketplaces, [suffering significant drops in volume](https://www.bloomberg.com/news/articles/2022-09-28/nft-volumes-tumble-97-from-2022-highs-as-frenzy-fades-chart#xj4y7vzkg), shifted their focus from Creators to Traders, enacting optional and zero royalties policies to attract traffic back to their platforms.

The result of giants like [OpenSea](https://www.coindesk.com/web3/2023/02/17/opensea-goes-zero-fee-creator-royalties-optional/), [LooksRare](https://decrypt.co/113021/nft-marketplace-looksrare-zero-royalties), and [Magic Eden](https://nftnow.com/features/magic-eden-makes-creator-royalties-optional/) eliminating Creator revenue pathways?

The top 10 projects alone missed out on $26 million in royalties JUST in Q4’22.&nbsp;

With each technological breakthrough, it's essential to understand the driving forces behind its emergence. As the creative world embraces NFT royalties, many are still asking: who requires NFT royalties and why?&nbsp;

*Here’s the deal*

While social media and digital platforms have expanded artists' reach, it's crucial to recognize the ongoing challenges faced by creators to maintain sustainable livelihoods through their work.

<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="320" height="320" src="/images/blog/blog2/Banner_small.png" /></a>

NFT royalties emerged as a solution for artists seeking a more viable business model for their future endeavors. Creatives across various industries, including composers, songwriters, authors, producers, and others involved in the creative process, often struggle to secure fair compensation.&nbsp;

For instance, many artists must allow streaming services to utilize their work in exchange for meager royalty fees. In fact, [one million people](https://www.musicgateway.com/royalties-calculator) could listen to a song on Spotify and the artist would only earn $4,000. [That won’t even cover one month in a New York apartment.&nbsp;](https://www.dailymail.co.uk/news/article-11845019/NYC-rents-surge-February-average-Manhattan-apartment-5-186-month.html)

Once a creation is sold, artists typically lose control over secondary sales and any associated royalties. NFT royalties present an opportunity to address these challenges and reshape the creative landscape.

### **Why Creative Communities Should Care About Protecting Royalties in Web3 Spaces**

Royalties play a pivotal role in fostering a healthy creative economy within the web3 landscape.&nbsp;

Here’s just a short list of why the web3 and creative community should prioritize protecting royalties:

1. **Fair compensation**&nbsp;Royalties ensure that creators receive a fair share of the revenue generated by their work, promoting a more equitable and sustainable ecosystem.

2. \*\*Incentive for innovation \*\*With the assurance of recurring income, artists and creators are encouraged to continue producing high-quality, innovative work that contributes to the growth of the web3 community.

3. **Long-term sustainability**&nbsp;Royalties help support the ongoing financial stability of creators, allowing them to focus on their craft without worrying about immediate financial pressures. This stability can lead to a thriving creative community that continuously pushes the boundaries of what is possible in the web3 space.

4. **Intellectual property rights**&nbsp;Royalties serve as a tangible acknowledgement of creators' intellectual property rights. By protecting and valuing these rights, the web3 community encourages respect for the work and effort put into creating digital assets.

5. **Economic growth**&nbsp;A robust system of royalties can stimulate economic growth within the web3 ecosystem. As creators generate consistent income, they are more likely to reinvest in the space, fostering the development of new platforms, tools, and services that benefit the entire community.

The relationship between royalties and revenue is fundamental to the success of web3 platforms and the creative community they support. By prioritizing the protection of royalties, the web3 ecosystem can ensure fair compensation, incentivize innovation, and promote long-term sustainability for artists and creators.&nbsp;

Because if there wasn’t anything to worry about, would Taylor have gone through the trouble of [releasing ‘Taylor’s Version’?](https://www.forbes.com/sites/abigailfreeman/2021/04/09/taylor-swift-is-free-again-but-just-how-much-is-her-fearless-strategy-worth/?sh=78eccb187f05)

<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img src="https://aspenft.io/images/blog/blog2/Banner_large_cta.png" /></a>

<h2>What's The Fuss About Royalties?</h2>
The digitization of creative works has brought about a significant shift in how artists, musicians, and creators can earn a living. Royalties have long been the backbone of creative revenue, and with the advent of web3, the relationship between royalties and revenue is evolving in unprecedented ways. 
Let's dive into this phenomenon and understand why protecting royalties is crucial for the web3 and creative community at large.
<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img src="https://aspenft.io/images/blog/blog2/Banner_large_no-cta.png" /></a>
<h3>Royalties in Context</h3>
Royalties are payments made to artists or creators as compensation for the use or sale of their work. In the web2 era, royalties have played a vital role in ensuring fair compensation for creative endeavors. Some notable examples include Dolly Parton bringing in over U.S. $20 million in royalties alone from Whitney Houston’s 1992 cover of ‘I Will Always Love You’ and The Happy Birthday song generating over U.S. $50 million in royalties.
It’s not just the songs that get stuck in our head that are making money, either. In fact, authors wholly depend on royalties from their publishers and it’s how patent holders make a living from their inventions or filings.
These payments can be one-time, recurring, or a combination of both, providing a predictable and stable source of income for creators.
<h3>Royalties: A Roadmap for Creator Revenue in Web3</h3>
As we transition to the decentralized world of web3, the concept of royalties is undergoing a transformation. 
An important distinction to make is the difference between NFT royalties and traditional royalty payments. NFT royalties represent compensation to the original creator for each subsequent sale of their digital assets.
Utilizing smart contracts on blockchain networks, NFT royalty payments are seamlessly encoded into the very fabric of the digital asset. During the minting process, creators have the ability to specify the royalty percentage they wish to receive. Upon the completion of a secondary NFT sale, the smart contract allocates the predetermined percentage from the transaction to the creator as a royalty payment.
A prime illustration of the potential for passive income through NFT royalties can be found in Beeple's &quot;Crossroads&quot; NFT. The piece was resold on the secondary market for a <a href="https://cointelegraph.com/news/beeple-nft-sells-for-record-6-6m-as-bidding-for-everydays-at-christie-s-hits-2-2m">staggering $6.6 million</a>, with the artist receiving 10% of the transaction as a royalty payment. This example highlights the potency of NFT royalties as a monetization tool for various forms of art.
While blockchain technology and smart contracts have revolutionized the way royalties are managed, distributed, and tracked, ironically, there’s still quite a few speed bumps when it comes to them as a reliable revenue source for web3 enthusiasts.  
<h3>How Optional Royalties Impact Creators' Ability to Generate Revenue</h3>
At the end of last year, NFT marketplaces, <a href="https://www.bloomberg.com/news/articles/2022-09-28/nft-volumes-tumble-97-from-2022-highs-as-frenzy-fades-chart#xj4y7vzkg">suffering significant drops in volume</a>, shifted their focus from Creators to Traders, enacting optional and zero royalties policies to attract traffic back to their platforms.
The result of giants like <a href="https://www.coindesk.com/web3/2023/02/17/opensea-goes-zero-fee-creator-royalties-optional/">OpenSea</a>, <a href="https://decrypt.co/113021/nft-marketplace-looksrare-zero-royalties">LooksRare</a>, and <a href="https://nftnow.com/features/magic-eden-makes-creator-royalties-optional/">Magic Eden</a> eliminating Creator revenue pathways?
The top 10 projects alone missed out on $26 million in royalties JUST in Q4’22. 
With each technological breakthrough, it's essential to understand the driving forces behind its emergence. As the creative world embraces NFT royalties, many are still asking: who requires NFT royalties and why? 
Here’s the deal
While social media and digital platforms have expanded artists' reach, it's crucial to recognize the ongoing challenges faced by creators to maintain sustainable livelihoods through their work.
<a target="_blank" rel="noopener" href="https://app.aspenft.io/"><img width="320" height="320" src="/images/blog/blog2/Banner_small.png" /></a>
NFT royalties emerged as a solution for artists seeking a more viable business model for their future endeavors. Creatives across various industries, including composers, songwriters, authors, producers, and others involved in the creative process, often struggle to secure fair compensation. 
For instance, many artists must allow streaming services to utilize their work in exchange for meager royalty fees. In fact, <a href="https://www.musicgateway.com/royalties-calculator">one million people</a> could listen to a song on Spotify and the artist would only earn $4,000. <a href="https://www.dailymail.co.uk/news/article-11845019/NYC-rents-surge-February-average-Manhattan-apartment-5-186-month.html">That won’t even cover one month in a New York apartment. </a>
Once a creation is sold, artists typically lose control over secondary sales and any associated royalties. NFT royalties present an opportunity to address these challenges and reshape the creative landscape.
<h3>Why Creative Communities Should Care About Protecting Royalties in Web3 Spaces</h3>
Royalties play a pivotal role in fostering a healthy creative economy within the web3 landscape. 
Here’s just a short list of why the web3 and creative community should prioritize protecting royalties:
<ol>
<li>
Fair compensation Royalties ensure that creators receive a fair share of the revenue generated by their work, promoting a more equitable and sustainable ecosystem.
</li>
<li>
**Incentive for innovation **With the assurance of recurring income, artists and creators are encouraged to continue producing high-quality, innovative work that contributes to the growth of the web3 community.
</li>
<li>
Long-term sustainability Royalties help support the ongoing financial stability of creators, allowing them to focus on their craft without worrying about immediate financial pressures. This stability can lead to a thriving creative community that continuously pushes the boundaries of what is possible in the web3 space.
</li>
<li>
Intellectual property rights Royalties serve as a tangible acknowledgement of creators' intellectual property rights. By protecting and valuing these rights, the web3 community encourages respect for the work and effort put into creating digital assets.
</li>
<li>
Economic growth A robust system of royalties can stimulate economic growth within the web3 ecosystem. As creators generate consistent income, they are more likely to reinvest in the space, fostering the development of new platforms, tools, and services that benefit the entire community.
</li>
</ol>
The relationship between royalties and revenue is fundamental to the success of web3 platforms and the creative community they support. By prioritizing the protection of royalties, the web3 ecosystem can ensure fair compensation, incentivize innovation, and promote long-term sustainability for artists and creators. 
Because if there wasn’t anything to worry about, would Taylor have gone through the trouble of <a href="https://www.forbes.com/sites/abigailfreeman/2021/04/09/taylor-swift-is-free-again-but-just-how-much-is-her-fearless-strategy-worth/?sh=78eccb187f05">releasing ‘Taylor’s Version’?</a>
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