NFT royalties play a crucial role in the context of sports NFTs within NFT Sports Marketplaces. When an NFT is created, the creator typically sets a royalty percentage that they will receive whenever the NFT is sold or resold. In the sports industry, this means that athletes, teams, or content creators can earn ongoing revenue from the sales of their NFTs even after the initial purchase. For example, if a sports NFT is initially sold for a certain price, and then resold at a higher value, a portion of the profit, as determined by the royalty percentage, goes back to the original creator. This incentivizes creators to produce high-quality and sought-after NFTs, while also allowing them to participate in the ongoing success of their work within the NFT Sports Marketplaces.
