Creator Royalties are coming to NFTX V3

NFTX has integrated a new feature that will greatly impact how royalties are handled. Let's take a look at the specifics of NFT royalties on NFTX, highlighting the technical processes and what this means for users.

What are NFT Royalties?

NFT royalties represent a percentage of the sale price that is paid to the original creator of the NFT whenever it is resold. This concept has been a game-changer in the NFT ecosystem, ensuring creators continue to receive compensation for their work even after the initial sale.

Royalty Support in NFTX

Detecting Royalty Support

To determine if an NFT supports royalties, NFTX utilizes a specific process. By inputting the code `0x2a55205a` into the `supportsInterface`, the platform can verify if the NFT is royalty-compatible. If the response is positive, NFTX offers users the option to enable or disable royalty deductions.

Enabling Royalty Deductions

Once a user opts for royalty deductions, the `tokenId` and `salePrice` of the NFT are passed to the `royaltyInfo` function. This step is crucial as it calculates the exact fee associated with that particular NFT, which can vary from one NFT to another.

Variable Royalty Fees

An interesting aspect of NFT royalties is their variability. For instance, an NFT could have a 20% fee for the first 12 months post-purchase, which then decreases to 0% thereafter. This dynamic fee structure is an important consideration for both buyers and sellers.

Processing Royalty Fees

The `royaltyInfo` function returns the address where the fee should be sent and the amount. NFTX handles the automatic transfer of this fee, but users must be aware of the fee amount during transactions.

Handling Multiple Items

In scenarios involving multiple NFTs, NFTX employs a multicall approach. By aggregating all `tokenIds` and their respective sale prices, a single RPC call is made to retrieve the necessary data. This method simplifies the calculation of royalties for multiple items, ensuring a uniform sale price for each NFT.

Application of Royalties on NFTX

Buying vs. Selling

It's important to note that these royalty deductions apply only when buying NFTs from the vault, not when selling. This distinction is crucial as the seller would have already paid any due royalties during their purchase or direct minting of the NFT.

Exclusion of Swaps

Currently, NFTX does not support royalties for swapping NFTs. This decision is based on the distinct nature of swapping compared to direct buying.

Compatibility with EIP-2981

NFTX’s royalty system aligns with [EIP-2981](https://eips.ethereum.org/EIPS/eip-2981), a standard for NFT royalties on the Ethereum blockchain. This ensures a consistent and standardized approach across the platform.

Future Developments

NFTX V3 and Beyond

The first version of NFTX V3 does not include the option to opt into royalty support when purchasing NFTs. However, plans are in place to incorporate this feature in NFTX V3.1, marking a significant advancement in the platform's offerings.

Enhancing User Experience

The integration of royalty support in the NFTX protocol is a move towards enhancing the user experience. It aligns with the platform's commitment to providing robust, user-friendly, and innovative solutions in the NFT market.

## Conclusion

The introduction of NFT royalties on NFTX represents a significant step forward in the NFT ecosystem. It not only ensures fair compensation for creators but also adds a layer of transparency and sophistication to NFT transactions. Users of NFTX need to familiarize themselves with this new feature, as it will impact how they buy, sell, and value NFTs within the platform. As NFTX evolves with its upcoming V3.1 update, embracing such advancements in technology will be crucial for all stakeholders in the NFT space. This commitment to innovation and creator compensation sets NFTX apart as a forward-thinking player in the digital assets realm.