How Freename TLD Royalties Work

In the digital economy, ownership is starting to mean something new.
Freename has now made it possible for a domain extension to become a continuous income-generating asset. The company’s TLD royalties model allows anyone who owns a Web3 Top-Level Domain (TLD) to earn money every time another user registers a domain under it. The idea combines blockchain transparency with the logic of property rights, turning internet infrastructure into a long-term source of revenue.

Understanding the Freename Royalty Model

A TLD sits at the end of a domain name, for example, .art, .game, or .music. In Freename’s Web3 model, these extensions are minted as tokens on the blockchain. When a user purchases and registers a TLD, that record is written permanently on-chain, confirming the owner as the legitimate holder of the extension.

Once the TLD is active, anyone who registers a second-level domain beneath it, such as studio.art or beats.music, generates a royalty for the TLD owner. This is not a lease or a temporary license. The TLD belongs to its owner outright, with no renewal fees or centralized authority to intervene.

How Royalties Are Generated and Distributed

The process is automated from start to finish. When a domain is registered under a Web3 TLD, the transaction details are recorded on the blockchain. A smart contract then allocates the correct royalty share to the TLD owner’s wallet.

Freename pays up to 50 percent of each registration fee. For example, if a domain under .metaverse is sold for 3,000 USD, the owner of that extension receives 1,500 USD directly. There are no waiting periods or manual transfers. The payment appears as soon as the transaction is confirmed.

Because the entire process is recorded on the blockchain, every registration and payout can be verified by anyone. This structure removes the uncertainty common in traditional licensing or affiliate systems. It also ensures that TLD owners know exactly where their income originates.

The Advantages of Freename’s Royalty System

Freename offers true digital ownership, control of a TLD, along with the right to collect royalties whenever it is used.

Key advantages include:

• Permanent control: No hidden costs once a TLD is minted.
• Automatic payouts: Smart contracts handle transfers with complete precision.
• Transparent tracking: Every payment is visible on-chain.
• Scalability: As more domains are registered under a TLD, royalties increase automatically.
• Security: Blockchain verification protects ownership records and revenue data.

In addition to royalties from standard domain registrations, investors can also generate revenue through subdomain sales. Each time a business or individual buys a subdomain under a primary TLD, a share of that transaction flows back to the owner. A single extension can therefore support hundreds or thousands of smaller digital properties, each contributing to the owner’s passive income.

Practical Example

Consider a user who mints the TLD .photography and activates the royalty license with a yearly fee of just $99. Every domain registered under that TLD, such as gallery.photography, studio.photography, prints.photography triggers a royalty payment. The distribution is automatic, handled entirely by Freename’s smart contract system.

This turns a TLD into a small ecosystem of its own, generating income as more users adopt it. In many cases, a popular niche TLD can outperform traditional investments because its value depends on community adoption rather than market speculation.

Promotion and Ecosystem Growth

To help TLD owners expand their reach, Freename provides a customizable Reseller Page. It acts as a storefront where users can showcase their available domains and direct buyers straight to checkout. The page supports AI-generated content, search optimization, and easy integration with social media.

Freename’s internal data shows strong demand for Web3 extensions. TLDs such as .usa (over 9,000 domains) and .japan (over 800) illustrate how visibility and promotion directly translate into consistent royalties. As more Web3 projects, creators, and companies adopt decentralized domains, the potential audience for each TLD continues to grow.

Why Freename Royalties Point Toward the Future of Web3 Ownership

Web3 technology is reshaping how people define value and identity online. Data, assets, and revenue streams can now exist without intermediaries. Freename applies this principle to the internet’s naming system, linking property rights with transparent economic rewards.

Each TLD on Freename functions as both a digital brand and a self-sustaining asset. Once created, it can generate income indefinitely as long as users continue to build beneath it. The model encourages community growth, rewards early participants, and demonstrates how ownership and creativity can coexist in a decentralized framework.

Conclusion

Freename TLD Royalties marks a clear shift in how digital property can produce value. It removes administrative barriers, ensures transparency through blockchain records, and provides a predictable system for recurring income.

For creators, developers, and investors, it represents an opportunity to participate directly in the Web3 economy by owning part of the internet’s future infrastructure.

Those who establish their TLDs early will define not only their digital identity but also their share in a growing ecosystem of decentralized domains.

Explore the Freename Aftermarket to register or mint a Web3 TLD and begin earning royalties from the activity built upon it.