IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v106y2025ics1057521925005599.html
   My bibliography  Save this article

The economics of resale royalties: Evidence from non-fungible tokens

Author

Listed:
  • Sun, Yutong
  • Jiang, Shangrong
  • Wang, Shouyang

Abstract

By constructing a comprehensive dataset of non-fungible tokens (NFTs) transactions, we investigate the impacts of resale royalties on the trading characteristics of market participants in the NFT platform. Our results show that one standard deviation increase in the royalty rate significantly correlates with a 7.04% decrease in market prices and a 4.8% decrease in the resale probability of NFTs. We also find that royalties have a greater impact on tokens with higher rarity during the NFT market boom. We deepen our analysis by incorporating several channels of the NFT royalty effects. Our analysis reveals that NFTs-enforced royalties have worse investment performance compared to royalty-free tokens. NFT investors attach less price premium to NFTs with royalties, since the information for the market value of NFTs is more symmetric when incurring royalty payments. Additionally, royalty tokens are less likely to be traded by speculative investors on the NFT platform. Our findings are robust across different estimation methods and transaction samples.

Suggested Citation

  • Sun, Yutong & Jiang, Shangrong & Wang, Shouyang, 2025. "The economics of resale royalties: Evidence from non-fungible tokens," International Review of Financial Analysis, Elsevier, vol. 106(C).
    • Handle: RePEc:eee:finana:v:106:y:2025:i:c:s1057521925005599
    DOI: 10.1016/j.irfa.2025.104472
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521925005599
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2025.104472?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:106:y:2025:i:c:s1057521925005599. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.