---
title: "Component Royalties"
path: "/contents/tech/core-concepts/component-royalties"
version: "1.2.0"
author: "Hydrate"
createdAt: "2026-02-18T22:38:09.732Z"
updatedAt: "2026-03-16T18:20:56.851Z"
---

# Component Royalties

<Infobox>
| **Mechanism** | Per-method royalty fees set by blueprint authors |
| **Enforced By** | [Radix Engine](/contents/tech/core-protocols/radix-engine) |
| **Currency** | XRD |
</Infobox>

## Overview

**Component Royalties** allow [Scrypto](/contents/tech/core-protocols/scrypto-programming-language) blueprint authors to earn fees whenever their deployed components are used. This is enforced at the [Radix Engine](/contents/tech/core-protocols/radix-engine) level — not by application logic — creating a sustainable business model for open-source [DeFi](https://en.wikipedia.org/wiki/Decentralized_finance) developers.

Authors set per-method royalty amounts in XRD. When a [transaction manifest](/contents/tech/core-protocols/transaction-manifests) calls a royalty-bearing method, the fee is automatically collected. This solves the open-source sustainability problem: developers can share their code openly while earning from its usage.