NFT Royalties: The Rise of Income License Tokens

[Chawla Solutions]

NFTs are no longer just digital art or access passes. A new model is emerging where NFTs function as legal licenses that represent the right to earn income. This is especially visible in projects that tokenize royalties and revenue streams.y

How It Works

• Buying an NFT can grant you the right to a share of royalties from a creative asset, such as a song, digital art, or branded merchandise.

• Revenue from the use of that asset is distributed directly to NFT holders.

• Instead of being just collectibles, these NFTs are tied to intellectual property rights.

Examples in Action

• Gala Music: Hold a track NFT and earn income based on plays.

• Corite: Crowdfunded music NFTs that share streaming revenue with supporters.

• Azuki / RTFKT: Brand-linked NFTs that embed licensing rights for merchandise and creative use.

Why It Matters
This model turns NFTs into income-generating assets that extend beyond speculation. It aligns with the broader tokenization of real-world rights, and could one day replace traditional copyright frameworks. By embedding royalties on-chain, creators ensure transparency, while collectors gain ongoing value.

Conclusion
NFTs are evolving into a new business model. With royalties encoded into smart contracts, holders become co-owners rather than passive buyers. The royalty-as-a-token approach paves the way for intellectual property to be fully tokenized, changing how creators and communities share value.