In the realm of digital assets, particularly Non-Fungible Tokens (NFTs), royalties refer to the compensation that creators receive as a fraction of the sale price whenever their work is resold on secondary markets. This mechanism ensures that artists can continue to earn from their work even after the initial sale, aligning their incentives with the ongoing value of their creations. Royalties can vary depending on the platform or the agreement established by the creator, typically ranging from 5% to 10% of the sale price. This system has become a fundamental aspect of the Web3 ecosystem as it promotes fair compensation for creators and supports sustainable economic models in digital art and content.