Hedera NFT royalties and fallback fees

A royalty percentage applies to the relevant value exchanged under the network's fee rules. As a simple illustration, 5% of 100 HBAR is 5 HBAR. That example is arithmetic, not a quote for a particular SentX trade.

The complete transaction can include other fees and exceptions. Read the actual quote and token configuration rather than treating this example as the buyer's or seller's final total.

A configured fallback fee can apply when an NFT transfer does not exchange fungible value in the way needed to assess the percentage royalty. The network rules also define exemptions and who pays.

This matters when planning distributions or transfers, not only conventional marketplace sales. Check the fee configuration before telling collectors that a transfer will cost nothing.

Do not assume that every movement of an NFT produces a royalty. Transfers and qualifying exchanges are different, and the transaction structure matters. Hedera's custom-fee documentation describes the assessment rules and limitations.

A marketplace history entry also needs interpretation. It can represent a transfer rather than a sale, so it should not be used alone to calculate royalty income.

A token's fee-schedule authority determines whether supported changes can be made. Do not describe every collection's royalties as permanently fixed without inspecting the token configuration.

Before creating a collection, decide the initial fees and who will retain authority to change them. Make those choices understandable to collectors.

Review collection keys and DreamForge fees before creating the token.