Markets are being forced to find new, creative ways to hold onto market share because of the NFT industry's struggles. It's a new trend to do that. There were creator royalties.
The industry hasn't completely eliminated royalties. Most of them have made them optional. It's not looking good for creators who were led to believe that the digital assets would be a long-term income stream.
Around 75 percent of NFT buyers chose to pay royalties on x2y2, when given the choice, according to the Director of Research at Proof. Around 18 percent is what that number is now.
The idea of 'tip jar' royalties where buyers can opt-in or opt-out will likely prove to be a zero-royalty policy over time. It's too easy to ride free.
A month ago, around 75% of NFT buyers opted-in to paying royalties on x2y2, when given the choice.
Now that number is around 18%
The idea of "tip jar" royalties where buyers can opt-in or opt-out will likely prove to just be a 0-royalty policy over time
Free riding is too easy pic.twitter.com/BAG9VfI18q
— NFTstatistics.eth (@punk9059) October 28, 2022
OpenSea, the world's largest NFT trading platform by volume, responded to its competitors by releasing confusing new guidelines. It hasn't folded to the lure of the royalty-free system yet, unlike Solana, which moved to a tip jar system just a few days after declaring its loyalty to royalties.
If creators insist on royalties, OpenSea will attempt to "enforce fees on-chain" for some subsets of collections.
If Open Sea decides to switch to a tip jar policy in December, it will leave creators in limbo, as it will be a test of whether they can honor fees and maintain market dominance.
"It feels like there is no plan, and no clear answers were given in regards to existing collections and artist's royalties," a popular creator wrote on the social networking site. Facts are not there and communication has been misleading.
The chaos of the situation, due in large part to Open Sea's wishy-washy take, definitely doesn't help. The move away from royalties is a betrayal of control that Web3 once promised the artists behind these assets.
The entire mission of Web3/NFTs is thrown off by abandoning creator royalties, according to Bobby Hundreds. Ensuring that artists get paid for their work is the main thesis for this technology.
The creators don't like what they hear.
The latest idea to make people actually buy NFTs is to throw in a house.
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