What is a royalty?

Royalty on a non-fungible token (NFT)

A royalty is a payment made to an individual or company for use or distribution of an asset.

One of the unique features of NFTs is the ability to distribute royalties from resales. NFTs are smart-contract based digital assets that can facilitate and enforce the terms and conditions of the transaction. The royalty structure in NFTs are based on the contract or marketplace.