Up until now, when a wearable creator made a sale in the primary market, they received the listing price minus a commission of 2.5%, which went to the Decentraland DAO. However, when the sale occurred in the secondary market, the owner of the item (not necessarily the original creator!) received the sale price minus the 2.5% commission, which still went to the DAO.

With the implementation of Royalties in the Decentraland marketplace, only primary market commissions are destined to the DAO, while those in the secondary market now go straight to the creative hands behind the wearables.

Creators of new and existing collections on Polygon will be able to set a beneficiary address per item in the collection management tool, be it themselves or a third party. If a wearable is sold multiple times, it is now up to the creator to decide who benefits from all those sales!

Please note that a new marketplace smart contract has been deployed to enable the distribution of royalties. As of deployment, all wearables listings are created in that contract. Royalties will go to the creator by default or a beneficiary if and when one is set. However, royalties are not retroactive, so listings created before this launch will not be eligible to receive them.

Empowering the creator economy within the community is at the very heart of Decentraland. This is a natural step in that direction made possible by the following DAO proposal: https://governance.decentraland.org/proposal/?id=b70c59d0-09c5-11ec-a4d1-8d5d2cba0825