I believe this is wrong. Creator percentage isn't coded into the Ethereum-based NFT's themselves, it's done at the marketplace level. Currently, if you bought an NFT on Foundation and sold it on Opensea, there isn't a way to encode directly into the NFT a guarantee Foundation's royalty agreement would be followed.
EIP-2981 is the draft protocol-level NFT royalty implementation, but you will note that it's opt-in and NFT marketplaces do not need to respect it (although theoretically they could be blacklisted/sued). It explicitly outlines why a non opt-in implementation wouldn't work:
> It is impossible to know which NFT transfers are the result of sales, and which are merely wallets moving or consolidating their NFTs. Therefore, we cannot force every transferFrom() call to involve a royalty payment, as not every transfer is a sale that would require such payment. We believe the NFT marketplace ecosystem will voluntarily implement this royalty payment standard to provide ongoing funding for artists and other creators, and NFT buyers will assess the royalty payment as a factor when making NFT purchasing decisions. [0]
The only non opt-in royalty percentage implementation I know of is Euler Beats, but that royalty percentage only applies to printing new NFTs through their bonding curve. If you bought an Euler Beat print through a third party, you could simply use the safeTransferFrom function and avoid royalties entirely.
As someone pointed out in this thread, this arrangement is very common for high end art already, since it helps keep incentives aligned between collectors and the artists.
I am an author of this EIP. You are correct. It is impossible to enforce unless the chain itself has NFT trading as part of a core feature. Otherwise it’s the honor system. But IMO this will be quite successful given the social pressure.
pardon my ignorance but how exactly does it force royalties to transfer? couldn't a owner just transfer the underlying etherum coin that is used for the NFT to another wallet address just like any other ethereum coin? and likewise exchange it in a new smart contract?
EIP-2981 is the draft protocol-level NFT royalty implementation, but you will note that it's opt-in and NFT marketplaces do not need to respect it (although theoretically they could be blacklisted/sued). It explicitly outlines why a non opt-in implementation wouldn't work:
> It is impossible to know which NFT transfers are the result of sales, and which are merely wallets moving or consolidating their NFTs. Therefore, we cannot force every transferFrom() call to involve a royalty payment, as not every transfer is a sale that would require such payment. We believe the NFT marketplace ecosystem will voluntarily implement this royalty payment standard to provide ongoing funding for artists and other creators, and NFT buyers will assess the royalty payment as a factor when making NFT purchasing decisions. [0]
The only non opt-in royalty percentage implementation I know of is Euler Beats, but that royalty percentage only applies to printing new NFTs through their bonding curve. If you bought an Euler Beat print through a third party, you could simply use the safeTransferFrom function and avoid royalties entirely.
As someone pointed out in this thread, this arrangement is very common for high end art already, since it helps keep incentives aligned between collectors and the artists.
[0] https://eips.ethereum.org/EIPS/eip-2981#universal-royalty-pa...