Animoca Brands Chairman: NFTs’ Shift Away From Royalties Is Wrong For Many Reasons
Animoca Brands Chairman: NFTs’ Shift Away From Royalties Is Wrong For Many Reasons.
With many NFT marketplaces beginning to move away from royalty fees within the past few months, Animoca Brands Chairman, Yat Siu, recently expressed his criticism towards the changing attitude and views towards creator royalties.
Importance Of Royalties
In a recent interview with Decrypt during NFT Paris, Yat Siu describes the lack of creator royalties in NFT marketplaces these days as “wrong for many, many reasons.”
“This is all about grabbing market share, and it’s at the expense of the creators,” Siu reportedly told Decrypt.
The Animoca Chairman describes royalties to be an important component to creators in the NFT space, arguing that getting rid of creator royalties will destroy the NFT space’s existing culture and do more damage in the digital industry than good.
“If you kill the royalties, you kill the very industry that fed you, so it has to be protected,” Yat Siu said.
This isn’t the first time the Animoca Brands Chairman has voiced his opinion on creator royalties. Earlier this month, Yat Siu also tweeted out his views of royalties being critical to maintaining the NFT space in response to OpenSea’s decision to turn off mandatory royalties on their platform.
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1/ As @opensea @blur_io battle for market share at the expenses of #creator #royalties the true losers in all of this are the creators and the ecosystem as a whole. I attach a reminder thread as to why fair #NFT creator #royalty is critical to maintain #opensea #NFTs #web3 https://t.co/GFZWLMHo89
— Yat Siu (@ysiu) February 18, 2023
BLUR vs OpenSea On Royalties
Recently, with the rise of the BLUR marketplace, OpenSea has been feeling immense pressure on its part to change its current standing on creator royalties. Earlier this month, OpenSea made the divisive decision to make royalty fees optional on their platform.
Although the decision of changing to optional creator royalties has been an incredibly divisive topic within the NFT community, the lack of royalties has also arguably caused a massive increase in buyers and sellers, with BLUR’s optional royalties seemingly causing the NFT marketplace to grow at a rapid pace.
“We thought we could catalyze widespread enforcement of creator earnings, and we hoped others might come up with more resilient solutions – this hasn’t happened.” The OpenSea team wrote, “Recent events – including Blur’s decision to roll back creator earnings (even on filtered collections) and the false choice they’re forcing creators to make between liquidity on Blur or OpenSea – prove that our attempts are not working.”
Aside from the optional royalties, OpenSea has also made a massive move of eliminating their marketplace fee for a limited amount of time.
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