The global NFT community discusses whether 0% creator royalties is good for digital artists in the long run
- The main NFT market removes royalties
- X2Y2 Team Responds “0% Royalty Isn’t The Way To Go”
Here’s why the X2Y2 team’s solution of setting royalties at 0% could be critically important to the progression of “serious” non-fungible tokens (NFTs).
The main NFT market removes royalties
Yesterday August 27, 2022, many Web3 and NFT enthusiasts tweeted about the X2Y2 team’s controversial decision to change creator royalties.
hot plug @the_x2y2Royalties are changing – great for the NFT space.
Slow carpet projects are altcoins with images and do not deserve royalties
Real NFT projects will be forced to become real profitable businesses. Raising the VC$ is a way to add pressure to this.
— Snowflake ❄️ (@jameskwho) August 26, 2022
With the new update, creators will not receive royalties when their works are sold. On the one hand, this measure will significantly reduce the income of NFT artists and will most likely cause them to leave X2Y2.
However, some speakers are convinced that the removal of royalties will encourage artists to seek venture capital funding instead of retail-oriented revenue models. This, in turn, will make symbolized art a “real profitable business”.
Additionally, an unnamed Azuki developer, Cygaar, has offered a tool designed to allow creators of NFTs to whitelist markets where buyers of their tokens can offer them.
X2Y2 Team Responds “0% Royalty Isn’t The Way To Go”
With this tool, teams can prevent their NFTs from being listed on zero-fee platforms.
Amid criticism, the X2Y2 team released a statement to confirm that their royalty policy is still being worked on. The final decision will be up to the token holders, X2Y2 representatives shared.
While the debate rages on, please note that this is far from a finished product and updates are already underway:
1. We will apply the royalty for 1/1 art and the like
2. Introduce a “holders only” voting system allowing holders to decide, as a group, to activate/deactivate optional charges
— X2Y2 (@the_x2y2) August 27, 2022
They added that removing royalties is not the path to the perfect business model for an NFT marketplace:
0% royalties is definitely NOT the way to go! We agree! We will work with market players on all sides to ensure this does not become the norm as it is up to us collectively as an industry to set the right standards and pave the way for the future of the industry. NFT space.
X2Y2 is the largest next-gen marketplace for NFTs among all services launched after the NFT craze in 2021.