Royalties Tokens (ROYs) are ERC20-compliant tokens where the functionality allows IMF (or the parties IMF appoints) to create an arbitrary number of new ROYs, as long as the ROYs are deleted in the same number before the end of the same transaction.
It is a great concept, but only if ROYs themselves has (intrinsic) value as as- set-backed tokens and ROYs have just that…