According to Compounding Quality on Twitter, Yusuf Ali defines royalties as ongoing payments received by the creator or owner of an asset, such as intellectual property or digital content, whenever that asset is used or sold (source: Compounding Quality, May 28, 2025). For crypto and NFT traders, understanding royalties is crucial because many NFT platforms enforce royalty payments on secondary sales, directly impacting profit margins and trading strategies. Traders should carefully review royalty structures for each asset, as these fees can affect both short-term flips and long-term holdings in the rapidly evolving digital asset market.