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Economics of NFTs: The Value of Creator Royalties. (arXiv:2212.00292v1 [econ.GN])
Dec. 2, 2022, 2:10 a.m. | Brett Hemenway Falk, Gerry Tsoukalas, Niuniu Zhang
cs.CR updates on arXiv.org arxiv.org
Non-Fungible Tokens (NFTs) promise to revolutionize how content creators
(e.g., artists) price and sell their work. One core feature of NFTs is the
option to embed creator royalties which earmark a percentage of future sale
proceeds to creators, each time their NFTs change hands. As popular as this
feature is in practice, its utility is often questioned because buyers, the
argument goes, simply ``price it in at the time of purchase''. As intuitive as
this argument sounds, it is incomplete. …
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