This paper proposes a decentralized framework for dynamic royalty distribution in the music industry using Non-Fungible Tokens (NFTs) and Ethereum-based smart contracts. Music assets are tokenized as ERC-721 NFTs, stored securely using IPFS, and governed by automated royalty agreements that adapt to streaming activity and resale events. The model includes a dual-layer royalty structure—comprising a base royalty and a stream-based bonus—to enhance fairness and transparency. By incorporating AES-256 encryption, MetaMask integration, and decentralized deployment, the platform ensures content security, seamless user interaction, and reduced reliance on intermediaries. This approach paves the way for more equitable, real-time, and scalable compensation models for artists and rightsholders in the digital age.