For decades, musicians have been stuck in a broken system. They pour their soul into a song, release it, and earn less than a penny per stream. Spotify pays about $0.0043 per play. Apple Music? Around $0.006. Even if your song hits a million streams, you’re looking at roughly $4,300 - and that’s before your label, distributor, and platform take their cuts. Meanwhile, the people who bought your music - your fans - can resell it for thousands, and you get nothing. That’s where NFT royalties change everything.
What NFT Royalties Actually Mean for Musicians
An NFT, or non-fungible token, is a unique digital certificate stored on a blockchain. When a musician mints a song, album, or even a single track as an NFT, they can program a royalty into its code. This means every time that NFT changes hands on a secondary market - say, a fan resells it for $500 - the artist automatically gets a cut. No middleman. No delay. No negotiation.
The royalty percentage? Usually between 5% and 10%. Some artists set it as high as 15%, especially for limited editions. That 10% on a $500 resale? $50 straight to the artist. Multiply that across dozens or hundreds of resales, and suddenly you’re earning more from resale royalties than you ever did from streaming. One artist on Reddit, going by @SynthWaveSam, earned $1,200 in royalties over six months from a $50 NFT album. That’s more than his monthly Spotify income.
How It Works: Smart Contracts and Blockchains
Behind every NFT royalty is a smart contract - a self-executing piece of code on a blockchain. Think of it like a digital vending machine. You set the rules: “When this NFT is sold again, send 8% of the sale price to this wallet.” The contract doesn’t need a lawyer or a bank. It runs on its own.
Most music NFTs live on Ethereum. It’s the most common, with about 80% of music-related NFTs built there. But Solana and Polygon are gaining ground because they’re cheaper and faster. Ethereum transactions can cost $1.50 to $15 in gas fees - sometimes more than the royalty itself on a low-value sale. That’s why platforms like Royal and OneOf use layer-2 solutions or alternative chains to keep fees low.
The magic happens in seconds. When a buyer purchases your NFT from someone else, the smart contract triggers a payment. In ideal conditions, the royalty hits your wallet within 15 to 30 seconds. No waiting for monthly statements. No chasing payments. Just clean, automatic income.
Real Examples: Who’s Making Money?
Kings of Leon didn’t just release an album in 2021 - they released it as an NFT. The primary sale brought in $2 million. But the real win? Ongoing royalties from every resale. While traditional album sales net artists about $0.70 per copy, NFT resales have kept rolling in for years. One fan bought the NFT for $50, later sold it for $1,200. The band got $120. That’s 170 times more than they’d earn from a single stream.
Then there’s RAC. He sold a single NFT for $1,000. Within a year, it changed hands 17 times. Each resale paid him 10%. Total royalties? $17,000. That’s 17 times his original sale - all from fans who loved his music enough to buy, hold, and trade it.
Even indie artists are seeing results. A bedroom producer in Wellington, New Zealand, minted a 5-track EP as NFTs with 7% royalties. Within four months, 23 resales generated $940. That’s more than her Spotify earnings for the same catalog in a year.
The Big Problem: Not All Marketplaces Play Fair
Here’s the catch: smart contracts are only as strong as the platforms that respect them. OpenSea, the largest NFT marketplace, used to enforce royalties automatically. Then, in 2022, they dropped enforcement. Why? They wanted to compete on price. Buyers could now avoid paying royalties by switching to platforms like LooksRare or Blur - where royalties are optional.
Artists like electronic producer BeatsByJen lost 60% of expected royalties because buyers moved to royalty-free marketplaces. She set a clean 8% royalty. The code was flawless. But the marketplace didn’t honor it. That’s not a bug. It’s a business model.
Some platforms are fighting back. Foundation still enforces 10% royalties. Royal and Catalog built their entire model around creator protection. Even LooksRare, once the villain, now shares 25% of its protocol fees with creators - a workaround that’s not perfect but helps. Meanwhile, artists are starting blacklists. Tyler Hobbs, a digital artist, publicly named marketplaces that ignore royalties. Fans now avoid them.
How Musicians Can Get Started
You don’t need to be a coder. But you do need to pick the right platform.
- Choose a music-focused NFT platform: Royal, OneOf, and Catalog are the top three. They’re built for musicians, with clear guides, artist support, and royalty enforcement.
- Prepare your asset: Upload your track, cover art, and metadata. Add unlockable content - like a live session, lyric PDF, or personal message - to increase value.
- Set your royalty: Stick to 5-10%. Too high, and buyers won’t bite. Too low, and you’re leaving money on the table.
- Mint on a low-fee chain: If you’re on Ethereum, use a layer-2 like Polygon to slash gas fees. Some platforms handle this for you.
- Market it to fans: NFTs don’t sell themselves. Use your email list, Instagram, Discord. Tell fans they’re not just buying music - they’re buying a piece of your legacy.
Most musicians spend 20-30 hours learning the basics. But once it’s set up? The royalties keep coming. Platforms like Royal offer 24-hour artist support. Catalog has a 120-page guide updated every quarter. You’re not alone.
What’s Next? The Future of NFT Royalties
By 2024, 78% of music NFT platforms say they’ll enforce royalties consistently. The Music NFT Alliance is pushing for a 5% minimum standard. That’s huge. It means the chaos might be ending.
Some platforms are experimenting with dynamic royalties - where the percentage drops over time to encourage trading, but creators still earn. Others are linking NFTs to DAOs (decentralized autonomous organizations), letting fans vote on how royalty funds are used - maybe funding a tour or a studio upgrade.
Blocktones is already bridging Web2 and Web3. It lets artists attach NFT royalties to traditional publishing deals. So you still get paid by ASCAP or PRS - but now, you also get paid every time your NFT is resold.
Long-term? Bernstein analysts predict NFT royalties will become a steady 10-15% of an artist’s income within five years. Not a replacement for streaming. A complement. A second income stream that grows as your music gains value.
Final Reality Check
NFT royalties aren’t magic. They’re not a get-rich-quick scheme. You still need to make great music. You still need to connect with fans. You still need to promote your release.
But for the first time ever, you’re not just selling music - you’re building a living asset. And when that asset is traded, you’re still in the room. You still get paid. You still own your value.
The old system treated artists like disposable content. NFT royalties treat them like creators. And that’s worth more than a stream.
Do NFT royalties replace streaming payments?
No. NFT royalties are a secondary income stream, not a replacement. Streaming still pays for plays, but NFTs pay when your music is bought and sold like a collectible. Together, they give artists more ways to earn - not fewer.
Can I set a royalty on any NFT platform?
Technically, yes - but not all platforms enforce it. Platforms like OpenSea, LooksRare, and Blur let buyers bypass royalties. Stick to music-specific platforms like Royal, OneOf, or Catalog if you want your royalties guaranteed.
How much can I realistically earn from NFT royalties?
It depends on your audience. A small indie artist might earn $500-$2,000 in a year from resales. A well-known artist with a loyal fanbase can earn tens of thousands. RAC made $17,000 from one NFT’s 17 resales. Your earnings grow with your fanbase - not your label.
Do I need to own crypto to use NFT royalties?
You need a crypto wallet (like MetaMask or Phantom) to receive royalties, but you don’t need to trade crypto or understand blockchain deeply. Most music NFT platforms walk you through wallet setup. Royalties arrive as ETH, SOL, or MATIC - you can cash them out to your bank via exchanges like Coinbase or Kraken.
Are NFT royalties legal?
Yes, as long as you own the copyright. The U.S. Copyright Office clarified in 2023 that owning an NFT doesn’t mean you own the song’s copyright. You must retain copyright and clearly state in your NFT terms what rights buyers get - like listening access or resale rights - to avoid legal issues.