Royalty Enforcement via Account Abstraction vs Externally Owned Accounts

Account Abstraction (AA) excels at granular, application-level control because it enables smart contract wallets to execute custom logic before a transaction is finalized. For example, a wallet can be programmed to revert any NFT sale transaction that doesn't include a royalty payment to a specified address, effectively enforcing rules at the point of sale. This approach is protocol-agnostic, working across marketplaces like Blur and OpenSea, but requires user adoption of these specific wallet standards (e.g., ERC-4337).

Externally Owned Accounts (EOAs) with Protocol Enforcement take a different approach by modifying the NFT smart contract itself. This strategy, used by protocols like Manifold's Royalty Registry or through EIP-2981, hardcodes royalty logic into the asset. This results in a trade-off of universal enforcement across all marketplaces versus reduced flexibility. Once set, these rules are difficult to change and rely on marketplace compliance, which is not guaranteed, as seen in the voluntary adoption rates of royalty-enforcing marketplaces versus fee-minimizing ones.

The key trade-off: If your priority is enforcement sovereignty and flexibility across diverse marketplaces, choose Account Abstraction. It puts control directly in the creator's or collector's wallet. If you prioritize simplicity and broad, baseline protection for a static collection, choose Protocol-Level Enforcement via EOAs. The decision hinges on whether you value adaptive defense (AA) or standardized, if fragile, ubiquity (EOA).

Account Abstraction (AA) excels at creating seamless, user-friendly enforcement by embedding logic directly into smart accounts. This allows for complex, programmable rules—like mandatory royalty payments on secondary sales—that are executed automatically, removing user friction. For example, protocols like Manifold and Zora leverage AA to ensure creator fees are paid without requiring buyers to manually adjust gas settings, leading to near-100% enforcement rates on compliant marketplaces.

Externally Owned Accounts (EOAs) take a different, more foundational approach by relying on marketplace and protocol-level compliance. This strategy results in a trade-off: it offers maximal flexibility and composability across the base layer (e.g., any wallet can interact), but enforcement becomes optional and dependent on individual platforms. The Ethereum and Solana NFT ecosystems largely operate on this model, where royalty adherence varies dramatically; some marketplaces like Blur have historically offered optional royalties, impacting creator revenue.

The key trade-off: If your priority is guaranteed execution and superior UX for creators, choose Account Abstraction. Its smart contract wallets (e.g., Safe, Biconomy) enforce rules by design. If you prioritize maximum ecosystem reach and minimal vendor lock-in, the EOA model remains the standard, though you must accept that enforcement is a social and marketplace-level challenge, not a technical guarantee.