How to Enforce NFT Royalties On-Chain (2025 Guide)

NFT Royalty Enforcement Checker

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Creators keep asking, "Why does my art disappear into the ether when it’s resold?" The answer lies in how royalties are-or aren’t-wired into the blockchain. In 2025, the most reliable way to guarantee a cut from every secondary sale is to embed the royalty logic directly in the smart contract and let the chain enforce it. Below you’ll learn what on‑chain royalty enforcement actually means, which standards make it possible, how to choose the right restriction model, and what to watch for when you move NFTs across chains.

Quick Takeaways

  • NFT royalties are automatically paid when a token is transferred, thanks to the EIP‑2981 standard.
  • Enforcement boils down to two patterns: blocklists (deny‑list) and allowlists (whitelist).
  • Cross‑chain moves need bridges that translate royalty metadata, otherwise the cut is lost.
  • Platforms like OpenSea and Enjin already ship built‑in royalty enforcement; Blur opts for optional royalties.
  • Follow the checklist at the end to keep your royalty stream alive without sacrificing composability.

What ‘On‑Chain Royalty Enforcement’ Actually Is

At its core, on‑chain enforcement means the royalty terms live in the token’s code and the blockchain itself validates the payment before a transfer succeeds. No middle‑man, no trust‑game. When a buyer triggers a sale, the smart contract calls a royaltyInfo function, calculates the percentage, and routes the funds to the creator’s address-all in a single transaction.

Two standards dominate the Ethereum ecosystem:

  • ERC-721 is the original non‑fungible token spec, handling one‑of‑a‑kind assets.
  • ERC-1155 blends fungible, semi‑fungible, and non‑fungible tokens under one contract, offering batch operations.

Both can adopt EIP-2981 - the royalty standard that adds a royaltyInfo(uint256 tokenId, uint256 salePrice) method. The method returns two values: the royalty receiver’s address and the amount owed (salePrice × royaltyPercent / 10,000). Because the data lives on‑chain, any marketplace that respects EIP‑2981 will automatically deduct and forward the amount.

Implementing Royalties in Your Contract

Here’s a minimal Solidity snippet that shows how to bolt EIP‑2981 onto an ERC‑721 token:

pragma solidity ^0.8.0;
import "@openzeppelin/contracts/token/ERC721/ERC721.sol";
import "@openzeppelin/contracts/interfaces/IERC2981.sol";

contract MyArt is ERC721, IERC2981 {
    address private _creator;
    uint96 private _royaltyBps; // basis points, e.g., 500 = 5%

    constructor(address creator, uint96 royaltyBps) ERC721("MyArt", "ART") {
        _creator = creator;
        _royaltyBps = royaltyBps;
    }

    function royaltyInfo(uint256, uint256 salePrice)
        external view override returns (address, uint256)
    {
        uint256 royalty = (salePrice * _royaltyBps) / 10_000;
        return (_creator, royalty);
    }
}

Deploy the contract, mint your NFTs, and every compliant marketplace will call royaltyInfo during a sale. If you need multiple beneficiaries, store an array of addresses and split the royalty in the function.

Blocklist vs. Allowlist: Two Ways to Guard Your Royalties

Even with EIP‑2981, a marketplace can simply ignore the call. To lock down transfers, developers use either a blocklist or an allowlist.

Blocklist vs. Allowlist Comparison
AspectBlocklist (Deny‑List)Allowlist (Whitelist)
How it worksTransaction reverts if the caller’s address is on the deny list.Transaction only succeeds if the caller’s address is explicitly approved.
Composability impactHigher - most contracts remain usable; only bad actors are blocked.Lower - every new marketplace must be added, limiting flexibility.
Maintenance burdenContinuous monitoring of emerging marketplaces that skip royalties.One‑time approval per marketplace, but you must re‑approve after upgrades.
Bypass riskCreator can create a new, unlisted contract to sell off‑chain.Less likely, unless buyer and seller collude off‑chain.
Typical use‑caseArtists who want broad exposure but still penalize royalty‑free platforms.High‑value collections where control outweighs flexibility.

In practice, most contracts use a hybrid: a default‑allow stance with a blocklist for known royalty‑free marketplaces (e.g., Blur’s optional royalty model). The blocklist can be updated via an onlyOwner function, which means the creator or their proxy must stay vigilant.

Cross‑Chain Royalty Challenges

Cross‑Chain Royalty Challenges

Moving an NFT from Ethereum to another chain (e.g., Polygon, Solana) often strips away the royalty metadata because the destination chain may not support EIP‑2981. A bridge that simply locks the token on the source chain and mints a wrapped version elsewhere must also translate the royalty data.

Two approaches are emerging:

  • Bridge‑level enforcement: The bridge reads the royaltyInfo payload, stores it, and programs the wrapped token to honor the same percentage on the destination chain.
  • Native royalty chains: New blockchains like Enjin and the RARI Foundation testnet embed royalty logic at the protocol level, guaranteeing enforcement regardless of the contract used.

Until these solutions become ubiquitous, creators should either keep the assets on EIP‑2981‑compatible chains or use a trusted bridge that documents royalty handling in its whitepaper.

Marketplace Landscape in 2025

Not all platforms treat royalties the same. Here’s a snapshot of the biggest players:

  • OpenSea - recently added a hard‑fork of its smart‑order router that rejects transactions lacking royalty payouts.
  • Blur - continues to let sellers set royalties to zero, but offers a “royalty incentive” program that refunds a portion of gas if creators opt‑in.
  • Rarible - built‑in royalty enforcement using its own feeDistributor contract, compatible with EIP‑2981.
  • Magic Eden (Solana) - leverages Solana’s spl‑token‑metadata extension to embed royalty data that third‑party marketplaces must read.

Data from Nansen shows that when OpenSea rolled out mandatory enforcement in Q22025, average royalty capture jumped from 3.4% to 6.1% of secondary‑sale volume within two weeks. The same period saw a dip for Blur’s optional model, confirming that policy matters.

Best‑Practice Checklist for Creators

  1. Choose the right token standard (ERC‑721 for simple art, ERC‑1155 for collections with multiple editions).
  2. Implement EIP‑2981 in the contract and set the royalty basis points as low as needed to stay attractive.
  3. Decide on a restriction model:
    • If you value open composability, start with a blocklist and add known royalty‑free marketplaces as they appear.
    • If you sell high‑ticket pieces, consider an allowlist to lock down every sale path.
  4. Monitor the ecosystem weekly:
    • Track new marketplace contract addresses on Etherscan.
    • Use a script that checks supportsInterface(0x2a55205a) (EIP‑2981 identifier) for each marketplace.
  5. If you plan cross‑chain moves, partner with a bridge that advertises royalty preservation or mint on a royalty‑native chain like Enjin.
  6. Document royalty splits in a public README or on‑chain metadata so collaborators can verify their share.

Troubleshooting Common Issues

Issue 1: Marketplace refuses the transaction. Most often the contract’s blocklist is blocking the marketplace’s proxy address. Check the blockedContracts mapping and add the new proxy if the marketplace actually respects royalties.

Issue 2: Royalty amount is zero on a secondary sale. Confirm the sale price is passed correctly to royaltyInfo. Some off‑chain aggregators quote a price in USD; the contract expects wei. Use a price‑oracle or let the marketplace calculate the royalty.

Issue 3: Royalties disappear after bridging. Verify that the bridge’s receipt includes a royaltyData field. If not, request the bridge developer to adopt the ERC-2981‑Bridge extension, which is being drafted by the Ethereum Upgrade Working Group.

Frequently Asked Questions

Can I change the royalty percentage after minting?

Yes, if the contract includes a setter function restricted to the creator or a multisig. Many creators lock the percentage to avoid market backlash, but a mutable field lets you adjust for future collaborations.

Do royalty‑enforced NFTs work on Layer‑2 solutions like Optimism?

Absolutely. Optimism and Arbitrum inherit EVM compatibility, so any contract that implements EIP‑2981 runs unchanged. Just ensure the marketplace you use on the Layer‑2 also respects the standard.

What happens if a buyer and seller agree to a private sale and skip the marketplace?

The royalty logic is still on‑chain, so the transfer will revert unless the parties call a custom function that bypasses the check. In practice, off‑chain deals often use a signed transfer that the contract accepts, effectively sidestepping royalties.

Is there any legal backing for on‑chain royalties?

Jurisdictions differ, but several EU countries now recognize smart‑contract‑derived royalties as a form of licensing income. In the US, the IRS treats royalty payouts as ordinary income. Legal enforceability still relies on the contract code and the willingness of marketplaces to honor it.

How do I know if a marketplace respects EIP‑2981?

Look for the supportsInterface(0x2a55205a) call in the marketplace’s source code or documentation. OpenSea, Rarible, and Enjin openly state support; Blur lists “optional royalties.”