02/09/2022 An NFT Marketplace Is Letting Buyers Avoid Royalty Payments. Creators Aren’t Pleased

The popular NFT marketplace X2Y2 announced it will no longer make buyers pay royalties on certain NFT purchases, sparking debate on the importance of such payments to the industry.

Royalty payments have become a cornerstone of the growing non-fungible token (NFT) industry, allowing artists to make money when people resell their work, venues to capture revenue on secondary marketplaces for NFT tickets and musicians to subvert streaming services in favor of more lucrative, blockchain-driven products.

But there’s a problem: Royalty payments are only enforceable on a marketplace level, and not on-chain. An NFT buyer, for example, could send ether (ETH) to a designated wallet after making an off-chain agreement to buy their NFT, and the seller could send them that NFT with no marketplace as a middleman for the transaction, paying no royalty fees in the process.

Sellers on marketplaces such as OpenSea can program a designated fee into each sale, in most cases between 5%-10% of an item’s purchase price, but if a marketplace wanted to waive the fee altogether, there’s nothing stopping them from doing so.

That’s exactly what’s happened withX2Y2, a popular NFT marketplace that announced on Friday that all royalty payments would be optional, making them the equivalent of a blockchain tip jar.

X2Y2 has been the most popular NFT marketplace by volume in the past week, according todatafrom NFTGO. It operates similarly to LooksRare, issuing its own token to buyers on the platform to incentivize transactions. It also still charges a 0.5% marketplace fee despite creator-imposed royalties being optional.

X2Y2’s announcement drew backlash from NFT Twitter, with many JPEG enthusiasts arguing that eliminating royalty payments would hurt the very artists and creators who first turned to NFTs as a more profitable medium of selling their work.

The debate around NFT royalties has been especially tense in recent weeks. Prominent digital artists have been weighing their pros and cons in public forums like Twitter, with most agreeing that the consequence of eliminating them altogether could be detrimental to Web3, but also perhaps inevitable without being able to enforce them on-chain.

X2Y2 evenadmittedthat buyers always setting creator royalties to 0% would be a bad thing for the general industry. In a Saturdayupdatein response to the backlash, the marketplace stated that it would be forcing buyers to pay creator royalties on sales of one-of-one (1/1) collectibles. The marketplace is also creating a “holders only” voting system whereby holders will decide as a group whether to enable or disable royalties for specific collections.

In the days since X2Y2 changed its royalty policy, only two Mutant Ape Yacht Club buyers out of 14 havechosen to pay royalty feesback to Yuga Labs, the project’s creator and possibly the most prominent company in NFTs.

Potentially significant consequences

If skirting royalty fees becomes commonplace, the next steps for NFT creators are obvious. Collections will blacklist certain marketplaces in their code to avoid missing out on these fees, ending the era of open marketplace competition that’s done so much to grow the industry in the past two years.

A change in attitude toward fees could also change the way that projects plan to generate revenue. A trend in recent months amid the broader NFT market downturn has been to lower mint prices and raise royalty fees, incentivizing project teams to continue engaging with their communities to earn their keep, as opposed to taking a lump sum off an initial mint.

The most prominent of these projects has beenGoblintown, whose NFTs were free to mint but included a hefty 10% royalty fee on every secondary sale. The project’s founding team, Truth Labs,announced on Thursdayit would be opening a dedicated marketplace for Goblin NFTs where every secondary sale would only carry a 5% royalty fee instead of 10%.

“I think for projects that have an ecosystem, [dedicated marketplaces] most definitely are the future,” Alexander Taub, co-founder ofTruth, the team behind Goblins, told CoinDesk. “If you have multiple collections that are interconnected, then owning that marketplace experience is really important.”

Arts

https://www.coindesk.com/business/2022/08/31/an-nft-marketplace-is-letting-buyers-avoid-royalty-payments-creators-arent-pleased/

Interesting NFTs
#64878
By OthersideDeployer
Who is Satoshi Nakamoto?
"Who is Satoshi Nakamoto?" is dedicated to the mysterious creation of Bitcoin, and acts as the showcase artwork within Javier Arrés’ exploratory series "Bitcoin, The Origin". "Who is the creator of Bitcoin?" The artist, Arrés, explores this question, and the feelings of doubt and mystery that accompany it, through his unique artistic language. An unknown, an enigma. It should be remembered that the name Satoshi Nakamoto is a pseudonym of Bitcoin's author or authors and gives us little insight into its true creator. For this Visual Toy, Arrés uses the signature claw machine, his famous half-operation, to symbolize our collective ignorance and unconfirmed belief: As soon as it has the stuffed animal within its grasp and appears to have solved the puzzle, the animal escapes again, and again. At present, there are three more public and studied possibilities who are either believed to be the creators of the currency or who directly claim the creation of it. It may be all or none of them, yet these three personalities leave us clues which are an important part of this interesting enigma. For this moment, it will remain unknown... In this artwork, Arrés elevates the claw machine from the apparatus, to an iconic pop art object serving as an important element to the Bitcoin creation narrative. Action is everywhere, with each movement serving an iconographical or metaphorical purpose related directly to cryptocurrency: Various ups and downs, roller coasters, mining points, robot, coins and more speak to a sense of hope, risk, mystery, randomness and possibility of pay out. Hundreds of manically thought out details make this creation one of the artist’s most complex Visual Toys to date. ------- "Bitcoin, The Origin" is a set of two Visual Toys, titled "Who is Satoshi Nakamoto" and "It’s Alive!" which reflect and explore the mystery and enigmas behind the creation of Bitcoin. Arrés presents these proposals to us in his signature style, full of iconography, fantasy, maniacal animations and a panoply of details (both subtle and overt) which simultaneously fascinate, hypnotize, and narrate this historical milestone through the singular vision of the artist. Through this series, Arrés freezes a crucial moment of cryptocurrency history, taking a still photo under his vision and turning it into two unique crypto artworks. ---- More info about Javier Arrés: https://javierarres.com/about.html
Tiger Princess
Ringers #109
Art Blocks is a first of its kind platform focused on genuinely programmable on demand generative content that is stored immutably on the Ethereum Blockchain. You pick a style that you like, pay for the work, and a randomly generated version of the content is created by an algorithm and sent to your Ethereum account. The resulting piece might be a static image, 3D model, or an interactive experience. Each output is different and there are endless possibilities for the types of content that can be created on the platform.
Nyan Cat
Nyan Cat is the name of an animation uploaded on April 2 2011, and became a viral internet sensation. The design of Nyan Cat was inspired by my cat Marty, who crossed the Rainbow Bridge but lives on in spirit. I am the original artist behind the iconic GIF and have remastered the image for its 10 year anniversary. Owning this piece grants the following stats: Charisma +10 Luck +10 Happiness +15 ________________ 1400x1400 - 12 Frames