7.3.0. Discontinual Royalty versus Perpetual Royalty
In the traditional financial system, once an author sells a copy of his book, he receives royalty for that transaction and at the same time ceases to have any ownership claim on that copy of his book. This means if the buyer decides to resell the book, the author cannot claim any royalty from this secondary sell. This is what SOC refers to as Discontinual Royalty.
However, NFT royalties are evolving in an opposite manner to what is obtained in the traditional financial system. Crafted into the NFT smart contracts are terms that allow the creator of the NFT to keep receiving royalties from the NFT any time such NFT is sold, no matter how many times it is sold.
That is, once an NFT is created, the creator will enjoy royalties from the NFT throughout the lifetime of the NFT. This is referred to as Perpetual Royalty. It is a new concept in the financial world, and it is rapidly gaining acceptance in the Crypto Market.