Understanding royalties and revenue streams

Course Content
What are NFTs?
Non-Fungible Tokens (NFTs) have emerged as a transformative force in the world of digital assets, blockchain technology, and the broader creative economy. These unique and indivisible tokens have redefined ownership, authenticity, and provenance in the digital realm. Here's a concise summary of what NFTs are. Definition: NFTs are digital tokens that represent ownership or proof of authenticity of a unique, non-interchangeable digital or physical asset, often stored on a blockchain.
Introduction to the Cosmos Network
The Cosmos Network, often referred to simply as Cosmos, is a groundbreaking blockchain project designed to address key challenges in the world of decentralized technologies. Launched by Tendermint Inc. and co-founded by Jae Kwon, Cosmos introduces a novel approach to blockchain interoperability, scalability, and usability. Here, we will delve into the fundamental aspects of the Cosmos Network, its goals, architecture, and significance in the blockchain space
Navigating the Stargaze Platform
By the end of this lesson, learners should be able to navigate the Stargaze platform, understand its interface, and perform basic operations like minting, listing, and purchasing NFTs. 1. Introduction to the Stargaze User Interface: Provide a visual tour of the platform. Highlighting: Dashboard Profile settings Wallet integration 2. Minting NFTs on Stargaze: A step-by-step guide on how creators can tokenize their work. Pre-requisites for minting Uploading the digital asset (artwork, collectible, etc.) Setting attributes, descriptions, and metadata Defining royalty structures Finalizing and minting the NFT 3. Listing and Selling NFTs: Instructions on how to make NFTs available for purchase or auction. Setting the price (fixed or auction-style) Time duration for auctions Promoting NFT listings Understanding transaction fees and final proceeds 4. Discovering and Purchasing NFTs: A guide for collectors and enthusiasts. Searching and filtering NFT listings Evaluating NFT details (ownership history, creator profile, etc.) Making a purchase or placing a bid Securing and managing purchased NFTs in one's wallet 5. Engaging with the Community: Highlighting the community features of Stargaze. Participating in discussions and forums Voting on platform proposals and governance issues Supporting and following favorite creators Summary: Reiterate the importance of understanding the Stargaze platform's mechanics. Emphasize that whether one is a creator or collector, mastering the platform can lead to a more rewarding experience in the NFT space.
The Economy of Stargaze
Stargaze, as an NFT platform operating on the Cosmos network, plays a pivotal role in the rapidly evolving digital art and collectibles industry. Like other blockchain-based platforms, Stargaze's economy is likely a blend of its native tokens, the NFT assets it hosts, and the interactions between creators, collectors, and traders. The economy of Stargaze, while rooted in the principles of blockchain and NFTs, has its unique characteristics shaped by its community, governance model, and its position within the Cosmos network. As the NFT landscape grows, understanding the intricacies of individual platform economies becomes essential for both creators and collectors. Lets dive in to the ecosystem.
Stargaze The Number 1 NFTs Platform On The Cosmos Network
About Lesson

Understanding Royalties And Revenue Streams.

Understanding royalties and revenue streams, especially in the context of NFTs (Non-Fungible Tokens), is essential for artists, creators, and collectors. Let’s dive deep into the concept of royalties and how they function within the NFT ecosystem.

Royalties in the Context of NFTs

1. What are Royalties?

  • Definition: Royalties refer to the compensation paid to the original creators or rights holders of a product, service, or piece of intellectual property (IP) each time it’s used or sold.
  • Purpose: They serve to reward creators for their work and provide an ongoing revenue stream.

2. Why are Royalties Important in NFTs?

  • Ongoing Revenue for Artists: Traditional art sales usually result in a one-time payment. With NFTs, artists can continue to earn every time the art is resold.
  • Incentive for Creation: The possibility of ongoing revenue can be an incentive for creators to produce high-quality work.
  • Fair Compensation: As the value of the NFT increases over time, artists can benefit from its appreciation.

3. How Do NFT Royalties Work?

  • Smart Contracts: NFTs are built on blockchain technology, and their attributes (including royalty information) are coded into smart contracts.
  • Automated Payments: Every time an NFT is sold on a secondary market, the smart contract automatically sends the specified royalty percentage to the original creator’s wallet.
  • Platform Specific: Some NFT platforms allow creators to set their royalty percentage, while others have a fixed rate.

4. Challenges with NFT Royalties

  • Cross-Platform Sales: Royalties might not be honored if an NFT is sold on a different platform than it was minted on.
  • High Royalties: Excessively high royalty rates might dissuade collectors from purchasing or reselling the NFT.
  • Legal Framework: The legal standing of NFT royalties in many jurisdictions is still uncertain, which can lead to disputes.

5. Revenue Streams in NFTs

Beyond royalties, there are other potential revenue streams for creators in the NFT space:

  • Initial Sale: Revenue from the original minting and sale of the NFT.
  • Collaborations: Teaming up with other artists or brands for limited edition NFT drops.
  • Holding & Appreciation: Some artists and collectors hold onto valuable NFTs, selling them later as their value appreciates.
  • Licensing: Allowing others to use the NFT or associated IP in various projects (games, movies, merchandise) in exchange for payment.
  • Virtual Real Estate & Gaming: In virtual worlds or blockchain-based games, owning, developing, and then renting or selling virtual real estate can be lucrative.


Royalties embedded in NFTs offer a transformative way to ensure artists and creators receive ongoing compensation for their work. However, the nascent nature of the NFT industry means there are still challenges to be addressed. As with any investment or venture, it’s crucial for artists and buyers to research platforms, understand the terms, and remain aware of the evolving landscape.

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