LooksRare Becomes Latest NFT Marketplace To Drop Mandatory Royalties
Ethereum NFT Marketplace LooksRare has just joined in other marketplaces to make massive changes to its royalty fee system, causing yet more divided opinions from the community.
As royalty fees have become a hot topic these last couple of months in the NFT community, many NFT marketplaces have joined in on the discussion by making their own changes. Royalties, which used to be mandatory in most NFT marketplaces are now being changed to become optional in many platforms. LooksRare has recently become the latest marketplace to make this change.
— LooksRare (@LooksRare) October 27, 2022
Previously before this change, creators of an NFT project would usually be free to set their own royalties. However, now collections will be free to choose to not have royalties at all.
Other changes will be made however to ease the lack of income from royalties, with the platform explaining that 0.5% of its 2% protocol fee would go to collections, as long as that collection has a receiving address for the funds.
Unsurprisingly, this decision has caused a massive rift of divided opinions from the community. Royalties and the importance of royalty fees in an NFT collection has always been a sensitive subject, with many claiming that royalties are important for artists to receive fair income for their work, while others argue that most NFT investors are always looking to buy NFTs at the cheapest price.
The avg royalty paid is around 6%.
I wouldn't say that giving artists 0.5% (a 90%+ cut) while keeping your own fee at 1.5% (a 25% cut) is a competitive solution that benefits creators.
I do get that everyone is trying to survive in this race-to-the-bottom. https://t.co/agGZ9weOuO
— NFTstatistics.eth (@punk9059) October 27, 2022
Many in the community have been criticising LooksRare decision to make royalties optional as they consider it to be normalizing 0% royalties in the space.
Others however, have complimented the platform and even applauded them for still providing artists with another way to earn income despite possibly lacking it from 0% royalties.