Criticism Poured In After DeGods & Y00Ts Transition To 0% Royalty Fees!
Criticism poured in after DeGods & Y00Ts transition to 0% royalty fees!
Recently, the DeGods and y00ts team sparked a massive buzz in the NFT community after they announced a new change involving their royalty fees which could change the entire outlook of royalties in NFT collections for the future.
Getting Rid Of Royalties
Over the weekend, the DeGods team announced through their Twitter that their team will be ‘experimenting’ on both DeGods and y00ts as well as t00bs by getting rid of royalty fees altogether to 0% royalties.
“We still believe that royalties are an incredible use case of NFTs. We will continue to support creators that want to find solutions to enforce royalties.” The team explains.
“We believe this is the best decision for our business at this time. It’s about time we take a new approach,” they elaborate.
Our next experiment. pic.twitter.com/VmoDfXvcyu
— DeGods (@DeGodsNFT) October 9, 2022
Read More: This CryptoPunk NFT Could Possibly Sell For A Massive $12 Million Soon!
Unsurprisingly, this decision has sparked a lot of debate in the community, with many blatantly criticizing the team for what they describe to be a “backwards move” in the NFT space.
For a long time, royalties have been a big topic in the space, as these extra fees are what allow artists who are often underpaid to continue to receive profit when their work is resold in secondary markets.
As artists are one of the biggest driving forces of NFT projects and collections, many in the community agree that it’s important to keep into consideration the well being of artists when making any massive changes in the project or space that may affect them, like lowering royalties.
Because of this, many have argued against the DeGods team to change to 0% royalties as this may cause a big movement encouraging more NFT projects to do the same. This in turn, like Twitter user @bryanbrinkman says, could end up pushing away artists from joining the world of Web3 and NFTs.
Real talk: Removing creator royalties from the space will push artists and creatives to more centralized platforms that can enforce it effectively.
— Bryan Brinkman (@bryanbrinkman) October 9, 2022
Related: DeGods & y00ts’ Dust Labs Receives $7M In Funding
Aside from this, others argue that another reason this decision could be considered stupid is due to the fact that projects and teams often profit from these royalty fees, allowing them for more funds to help push their project forward.
By getting rid of royalties altogether, the team is essentially relying on funds solely from their primary sales, which some argue isn’t a wise move.
0% royalties is the dumbest thing any NFT project has ever done in web3 and I don’t suggest anyone else follow this lead. It’s an obvious move to look good to make up for all the short comings and everyone complaining about the terrible business decisions constantly being made.
— Hustler (@0xHustler) October 9, 2022
There are others however, who are in support of this new change by DeGods and y00ts, arguing that the team knows what is best for their project and that these new 0% royalty fees are the future of NFT collections.
Due to the expansiveness of many NFTs as well as the often high gas fees that come with minting them, many in the NFT community are always looking for ways to lower fees so that they can spend less on NFT purchases. Because of this, some users argue that 0% royalties will be the future of NFTs as more and more investors will be inclined to buy from projects that support these low royalty fees.
0% royalties are an unavoidable meta. Like them or not, it’s happening
Adapt or die
— ThreadGuy.eth 👑 (@notthreadguy) October 9, 2022
Since the team announced this massive news, the DeGods collection price fell by up to 15% and is now at a floor price of 324 SOL, while the y00ts’s t00b NFTs also fell by 16%, now trading at a floor price of 117 SOL at the time of writing.
Fight Against & For Royalties
For a long time royalties have always been a hot topic for many in the community. The DeGods & y00ts announcement wasn’t the first to make a big buzz and divided opinions in the community, in fact, a number of NFT marketplaces have been trying to implement the concept of 0% royalty fees on their platform, leading to massive complaints and criticism.
Related: Magic Eden Defends Its New Tools from NFT Community
For more info regarding Crypto Alpha and NFTs Alpha. Always follow us on Twitter and Instagram.