The NFT Royalty Standard EIP-2981 Released to Support Artists
- The much-awaited EIP-2981 finally graced the crypto space with its presence last month.
- It focuses on NFT creators’ source of income; royalties.
- Attaching royalty information to the token itself, it enables creators keep a consistent stream of earning.
Last month’s most exciting development for the digital space has undoubtedly been the much-coveted EIP-2981 standard.
To be specific, EIP-2981’s offering focuses on NFT creators and brings a much-needed solution. It offers to attach royalty information directly to the token itself, and with this makes use of a common data store and computation for all participants to access, the Ethereum blockchain.
Now, why is this important? Recent years’ developments brought us the advent of NFTs, and the creation of a new medium for creators to monetize their work. This means not just by selling them once and for all, but by keeping a record of sales using blockchain infrastructure. This way creators could earn royalties on top of each sale.
However, a problem with the wide-scale disclosure of these records still held creators back. As of now, an open royalty payment standard does not exist. Even though records are stored on marketplaces within Ethereum, for instance, they are not sharable amongst different platforms. As a result, in case creators or buyers take an NFT off a platform, information records of its descent will no longer exist. Because of this, the creator won’t receive royalties anymore.
Considering these concerns, the EIP-2981 was developed over a year’s time. It eliminates this issue completely by signaling to market participants the royalty information for a given NFT. Its goal focuses on providing a gas-efficient solution while avoiding restrictions on future royalty payments.
Currently, the new standard is establishing awareness for itself so as to encourage users and marketplaces both to accept and implement it.
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