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Plain meaning

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Mechanisms that ensure NFT creators receive their specified royalty percentage on secondary sales. After marketplaces began allowing royalty-optional trading in 2022-2023, Metaplex introduced programmable NFTs (pNFTs) with on-chain transfer rules that enforce royalty payments. Alternative approaches include economic incentives (rewarding royalty-paying holders) and social pressure. Royalty enforcement remains a debated topic in the NFT ecosystem.

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SPL assets, token standards, metadata, and NFT primitives.

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Royalty Enforcement (royalty-enforcement)
Category: Token Ecosystem
Definition: Mechanisms that ensure NFT creators receive their specified royalty percentage on secondary sales. After marketplaces began allowing royalty-optional trading in 2022-2023, Metaplex introduced programmable NFTs (pNFTs) with on-chain transfer rules that enforce royalty payments. Alternative approaches include economic incentives (rewarding royalty-paying holders) and social pressure. Royalty enforcement remains a debated topic in the NFT ecosystem.
Related: Seller Fee Basis Points, Programmable NFT (pNFT), Authorization Rules

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Seller Fee Basis Points

A field in Metaplex NFT metadata that specifies the creator royalty percentage on secondary sales, denominated in basis points (100 = 1%). For example, 500 means a 5% royalty split among the creators array according to their share percentages. Enforcement varies by marketplace—some honor royalties voluntarily, while programmable NFTs (pNFTs) enforce them at the protocol level.

Metaplex Token Metadata

Open term

Branch

Programmable NFT (pNFT)

A Metaplex NFT type (pNFT) that enforces creator-defined rules on transfers using an on-chain authorization rules engine. pNFTs always require the token record (state PDA) and must go through the Metaplex program for transfers, enabling royalty enforcement. Transfer rules are defined in a RuleSet account that can allow/deny based on program IDs, collections, or custom logic.

NFT (Non-Fungible Token)

Open term

Branch

Authorization Rules

A Metaplex program that defines and evaluates rule sets for programmable NFTs. Rules specify conditions for transfer, delegate, and other operations—e.g., allow transfers only through specific marketplaces (by program ID), require payment of royalties, or restrict to certain collections. Rules are composable using AND/OR/NOT logic.

Open term

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Token Ecosystem

Seller Fee Basis Points

A field in Metaplex NFT metadata that specifies the creator royalty percentage on secondary sales, denominated in basis points (100 = 1%). For example, 500 means a 5% royalty split among the creators array according to their share percentages. Enforcement varies by marketplace—some honor royalties voluntarily, while programmable NFTs (pNFTs) enforce them at the protocol level.

Open term

Token Ecosystem

Programmable NFT (pNFT)

A Metaplex NFT type (pNFT) that enforces creator-defined rules on transfers using an on-chain authorization rules engine. pNFTs always require the token record (state PDA) and must go through the Metaplex program for transfers, enabling royalty enforcement. Transfer rules are defined in a RuleSet account that can allow/deny based on program IDs, collections, or custom logic.

Open term

Token Ecosystem

Authorization Rules

A Metaplex program that defines and evaluates rule sets for programmable NFTs. Rules specify conditions for transfer, delegate, and other operations—e.g., allow transfers only through specific marketplaces (by program ID), require payment of royalties, or restrict to certain collections. Rules are composable using AND/OR/NOT logic.

Open term

Token Ecosystem

Securitize

SEC-registered transfer agent and broker-dealer providing infrastructure for digital securities: KYC/AML, transfer restriction enforcement, and secondary market compliance. Transfer agent for BlackRock's BUIDL fund. Enforces compliance through programmable transfer logic.

Open term

Related terms

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Token Ecosystemseller-fee-basis-points

Seller Fee Basis Points

A field in Metaplex NFT metadata that specifies the creator royalty percentage on secondary sales, denominated in basis points (100 = 1%). For example, 500 means a 5% royalty split among the creators array according to their share percentages. Enforcement varies by marketplace—some honor royalties voluntarily, while programmable NFTs (pNFTs) enforce them at the protocol level.

Open term

Token Ecosystemprogrammable-nft

Programmable NFT (pNFT)

A Metaplex NFT type (pNFT) that enforces creator-defined rules on transfers using an on-chain authorization rules engine. pNFTs always require the token record (state PDA) and must go through the Metaplex program for transfers, enabling royalty enforcement. Transfer rules are defined in a RuleSet account that can allow/deny based on program IDs, collections, or custom logic.

Open term

Token Ecosystemauthorization-rules

Authorization Rules

A Metaplex program that defines and evaluates rule sets for programmable NFTs. Rules specify conditions for transfer, delegate, and other operations—e.g., allow transfers only through specific marketplaces (by program ID), require payment of royalties, or restrict to certain collections. Rules are composable using AND/OR/NOT logic.

Open term

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Token Ecosystem

SPL Token Program

The original Solana Program Library token program (TokenkegQfeZyiNwAJbNbGKPFXCWuBvf9Ss623VQ5DA) that implements fungible and non-fungible token operations. It manages mints (token definitions) and token accounts (balances). Core instructions include InitializeMint, MintTo, Transfer, Burn, Approve (delegation), and Revoke. All SPL tokens on mainnet before Token-2022 use this program.

Open term

Token Ecosystem

Solana Program Library (SPL)

Solana Program Library—a collection of on-chain programs and client libraries maintained by Solana Labs. Key SPL programs include Token, Token-2022, Associated Token Account, Memo, Name Service, Stake Pool, and Account Compression. SPL programs are deployed to well-known addresses and serve as the standard building blocks for Solana applications.

Open term

Token Ecosystem

Token-2022 (Token Extensions)

The next-generation token program (TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb) that extends SPL Token with configurable extensions. Extensions include transfer fees, confidential transfers, transfer hooks, permanent delegate, non-transferable tokens, interest-bearing tokens, metadata, and more. Token-2022 is backwards-compatible with SPL Token for basic operations.

Open term

Token Ecosystem

Mint

An on-chain account defining a token type. A mint specifies: supply (total minted), decimals (0 for NFTs, 6 for USDC, 9 for most tokens), mint authority (who can mint), and optional freeze authority. Each unique token (USDC, JitoSOL, etc.) has exactly one mint account. Mint address serves as the token's unique identifier.

Open term