TL; DR
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Want NFT creator royalties back? We must use sticks, not carrots.
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OMA3’s ‘standards’ approach will not reduce royalties. At least, if these standards are dependent on the honor system to be upheld, that will not be the case. We have seen this tried. It does not work.
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Our proposed solution: Create a platform that maintains an NFT collection and updates individual NFTs if/when they go up for sale on marketplaces that don’t enforce royalties, thus bricking the tool and blacking out the image.
Full story
Want NFT creator royalties back? We must use sticks, not carrots.
OMA3 (also known as the Open Metaverse Alliance for Web3) is a group made up of some of the strongest players in the Web3 industry, including:
Yuga Labs (the makers of Bored Ape), Magical Eden (the NFT marketplace), and Animoca brands (the Web3 gaming giant).
Either way, OMA3 is on a mission to standardize creator royalties on NFT marketplaces super important!
Ensuring that both holders and creators can derive monetary value from an NFT series over time will improve the overall health of the space in the long term.
…the only problem is that OMA3’s ‘standard’ approach doesn’t bring back royalties.
At least, if these standards are dependent on the honor system to be upheld, that will not be the case. We have seen this tried. It does not work.
That’s why we thought we’d publicly submit an unsolicited idea to OMA3:
Customize the technology behind the ‘Aspen’ platform (created by Monax laboratories), which tracks and blocks the utility of an NFT if royalties on a sale are not honored.
We’ve mentioned a version of this in the past, and it goes something like this…
Create a platform that maintains an NFT collection and updates individual NFTs if/when they go up for sale on marketplaces that don’t enforce royalties, thus bricking the tool and blacking out the image.
The only way to fix it? Remove it from the marketplace.
The only way to avoid this in the future? List the NFT on a marketplace that honors royalties.
This will make the idea of ’zero royalty marketplaces’ toxic in the minds of both buyers and sellers, destroying the advantage they once had and undermining the ‘low/no royalty’ business model.
It’s an option without any cold… but it would work!