  The secondary market for Ethereum non-fungible tokens (NFTs) has resulted in
over $1.8bn being paid to creators in the form of a sales tax commonly called
creator royalties. This was despite royalty payments being enforced by no more
than social contract alone. Predictably, such an incentive structure led to
zero-royalty alternatives becoming abundant and payments dwindled. A purely
programmatic solution to royalty enforcement is hampered by the prevailing NFT
standard, ERC-721, which is ignorant of sale values and royalty enforcement
therefore relies on (potentially dishonest) third parties. We thus introduce an
incentive-compatible mechanism for which there is a single rationalisable
solution, in which royalties are paid in full, while maintaining full ERC-721
compatibility. The mechanism constitutes the core of ERC-7526.
