Blockchain research and data company Nansen has reported royalty earnings from Ethereum’s leading brand of non-fungible tokens (NFTs).

Leading the charge in the Ethereum NFT, Bored Ape Yacht Club (BAYC) has reported impressive earnings of over $58 million in royalties. BAYC, a well-known series of NFTs, is a prime example of the trading potential offered by this digital realm, adding a new layer to the economic viability of the Ethereum ecosystem.

Hot on the BAYC trail, Azuki, another popular NFT series, also announced substantial royalty gains via Ethereum NFTs. The anime-inspired NFT project has amassed more than $43 million in royalties, underscoring the lucrative prospects of the burgeoning NFT market.

Furthermore, the whimsically named Pudgy Penguins were not far behind, earning over $7.2 million in royalties from Ethereum NFTs. The charming and unique characters have managed to gain a foothold in the highly competitive digital token space.

NFT royalties are an embedded monetary feature present in certain non-fungible tokens (NFTs), which give the initial artist or creator of the digital asset a percentage of the proceeds each time the NFT is resold or traded in the future. This mechanism ensures a continuous stream of income for creators, which is a marked difference from the traditional art industry, where creators are often compensated for their work with a one-time payment upfront.

This is made possible by smart contracts on the Ethereum (and other) blockchain. When an NFT is minted, the creator can include terms in the smart contract that specify a certain percentage that they receive from all future transactions. Every time the NFT is resold on the secondary market, the smart contract automatically redirects a portion of the sale to the original creator’s cryptocurrency wallet.

Simply put, NFT royalties help ensure that artists can continually benefit from their work, even as its value increases and changes hands over time. This feature is considered a significant innovation in favor of artists and content creators in the digital space.