How do freename royalties work?

In answering the question, how do Freename royalties work? Let’s first look at Royalties in general and in practical use.

Royalties, often known as royalty payments, are sums of money given to another party in exchange for continuing to use their assets. For example, in exchange for a (royalty) compensation, musicians often agree to have their albums played on the radio, streamed online, or sampled by other musicians in the music industry. But not only musicians are entitled to royalties when their work is used, anyone who participates in the creative process, including songwriters, composers, publishers, authors, and producers, may be eligible to receive royalties.

However, since its inception, the system for royalties payments has been plagued by problems, with artists frequently dealing with issues like fraud, lost or stolen data, delayed payments, disputes over ownership, and a lack of urgency on the part of distributors to adjust to the needs of the digital age on the internet.

Fortunately, a surprising yet welcome solution has started to gain hold in the creative industry over the past few years, and finally, designers, creators, and artists are starting to see the rewards they are due for their creative labor. Yes, blockchain technology and NFTs have changed yet another industry, and at this point, royalty payments represent one of the most blatant use cases for NFTs.

Every time an artist’s work is sold again, NFT royalties pay them a portion of the proceeds. The best aspect is that the whole process is automated, so no matter how many secondary sales take place, the royalties will always be paid back to the original artist.

The ability for artists to receive a portion of the income from their work in perpetuity is made possible by the blockchain, smart contracts, and the unique identifier capabilities of NFTs. This is exactly how royalties should work.

Now, royalties on Freename are exactly akin to this but differ from what entitles a user to royalties.

Royalties through Web3 TLDs and domain names.

In answering the question, how do royalties work on Freename? We now must define what Web3 TLDs and Domains are, as these are ways through which users can earn royalties on Freename.

Web3 domains are multi-utility NFTs (non-fungible tokens) or “digital certificates” publicly transparent on the blockchain. Web3 domains are distinctive assets that provide a doorway to decentralized websites and services and a practical means of sending and receiving money. Buying a Web3 domain is the first step for those who want to build their Web3 website.

A domain name is the recognizable and memorable web address visitors enter into the address bar on browsers to access a website. Web3 domains are assets on the Web3 internet, and thus one can generate income through them.

Having now seen the relationship between Web3 TLDs and NFTs, it is safe to say that if artists could earn through NFTs, it is also possible for TLDs creators to earn royalties on their domains.

Exactly how do Royalties work on Freename?

Freename royalty consists of an exclusive contract that allows you to generate passive income every time someone registers a domain on a TLD (e.g., .lambo) owned by you.

When the Web3 domain is created or minted, the conditions outlined in the smart contract determine the number of royalties that users would earn. The maximum royalty rate on Freename is 50%, meaning an owner will get the full 50% whenever another user registers on the created TLDs. For instance, if you create or mint new top-level domains with a royalty fee included in the contract, even after many years, you would still receive royalties on them.

Users of the Freename protocol can profit similarly to a Web2 registrar like GoDaddy. Every time a Web3 domain is registered on a user’s Web3 TLD like “.metaverse” or “.airdrop” after they unlock the Royalty license, they get paid half the domain registration fee.

Usually, a Royalty is unlocked by making a one-time payment of $50.

You have the opportunity to become your Web3 Registry by using Freename TLDs. Once you have a TLD, you can turn on royalties by making the one-time payment of $50, so that you get a cut of any domain registrations made by third parties.

The immutability and transparency of the blockchain make all of this possible. The automated processes will ensure that if the conditions outlined in the smart contract are satisfied, the appropriate action is executed: the payment of royalties. The public ledger safeguards the integrity and validity of the artwork.

Additionally, the blockchain will carry out its task without needing a third-party agent or middleman, enhancing the value provided to creators and minters. The following are some other advantages of Web3 TLDs royalties:

  •       Granting creators complete rights over their minted TLDs
  •       There are no ownership disputes
  •       Completely automated payment methods
  •       There are perpetual royalties despite the frequency of secondary use.

Importance of blockchain to Web3

For those looking for ways to earn on Web3, the incorporation of NFTs represents a breath of fresh air. Royalties can be set on virtually anything across Web3.  Fortunately, this is gradually disappearing thanks to blockchain, smart contracts, and NFTs.

There is a good chance that the rise of NFT royalties will lead to a revival of many industries as users feel confident that they will be fairly compensated for their contribution to Web3 platforms because the original creators regain full control over their work and set their terms (without the need for a middleman).


Royalties on Freename work almost the same way other royalties work on every platform. With the help of blockchain and smart contracts, there are no trust issues or delayed payments. Once you create or are the first to mint a new Web3 TLD on Freename and activate the royalty contract, you are certain to earn each time a domain is registered on your created TLD.


Start your Web3 journey with Freename TLDs and Domains. Sign up now and get a welcome coupon code of 10$ on your first purchase.