Royalty Revenues – Another Means of Passive Income

Over the weekend, I overheard some family members discussing franchises and Royalties. Then someone mentioned that McDonald’s generated approximately five billion US dollars in royalties revenue from McDonald’s franchises worldwide in 2022, which piqued my interest in franchise and royalty revenues.

A royalty fee is an ongoing fee paid by the franchisee to the franchisor. The franchisor uses the royalty fees to support its existing franchisees while also maintaining and expanding the franchise system.

Interestingly, royalties are not restricted to franchise systems because royalties are payments made to property owners in exchange for the use of their property. Royalties are frequently used to pay for the use of the intellectual property (IP) such as copyrights, patents, and trademarks for music, books, movies, artwork, and so on.

The NFT royalties percentage on the “Crossroads” NFT by Beeple is one of the most popular examples of passive earnings through Royalties revenue. The NFT was resold on the thread secondary market for approximately $6.6 million, and the creator received a royalty payment of 10% of the transaction. You can see how NFT royalties provide a powerful tool for monetizing various works of art.

Surprisingly, there is a similar scheme of passive income with the Developer’s Royalty Fees (DRF) as seen with GitHub and QAN blockchain. QAN blockchain will be the first blockchain platform to propose to offer developers rewards when their codes are reused.

To be honest, I’d like to hear our thoughts on royalties as a source of passive income in addition to the well-known staking, liquidity mining, and other common DeFi schemes.

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6 thoughts on “Royalty Revenues – Another Means of Passive Income”

  1. RadixDLT is promoting a similar developer royalties setup. I think it’s a great way to incentivize development.

  2. Royalties for NFT creators are well-known in the blockchain space. H however, this thing for developers sounds very innovative and could attract more of them to Web3.

  3. How will the royalty based reusing code work? What if the code was already used on another blockchain before it being used on Qan? Will the dev still receive royalty as the originator?

  4. This is interesting. Looks quite similar to the concept of NFEs which makes it possible for users to actually partake of the profits accruing from a project. Non-fungible equities. Here I was, thinking that NFTs were done for good lol.

  5. The potential of NFT royalties is significant, as it provides creators with a powerful tool to monetize their works of art. The success of the “Crossroads” NFT by Beeple, with the creator receiving a royalty payment of 10% of the transaction after it was resold on the secondary market for $6.6 million, is an excellent example of how NFT royalties can be a significant source of passive earnings.


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