in a nutshell
- LooksRare, an Ethereum NFT marketplace, has made royalty payments to creators optional when trading NFTs.
- The platform will allow buyers to choose to pay royalties, and will also be able to distribute a portion of the protocol fees to NFT creators.
Another domino has fallen amid the rising trend of NFTs Marketplaces no longer enforce royalties on creators, ethereum Marketplace Luxrea announced today that traders will no longer have to pay these fees on their trades.
Written by Lux Rea If traders sell NFTs, they will instead allow buyers to “opt-in to pay optional royalties,” according to a blog post that “will no longer support creator royalties by default.” This is a similar approach to what his Magic Eden on the Solana NFT Marketplace did. Announce your own move Earlier this month, we will make creator royalties optional.
However, LooksRare also said it will pass 25% of the protocol fees it charges merchants for trading NFTs to creators. LooksRare charges a total commission of 2% of the sale price. This means that 0.5% of the sale price will go to creators in lieu of their respective royalty rate.
Many NFT creators see a small amount of secondary sales (usually 5% to 10% of the price) to set up royalties that are automatically sent to the original artist or creator by the marketplace in question. However, these royalties are not fully enforceable on-chain using his current NFT standards, creating loopholes that some marketplaces use to lure traders.
On Ethereum, marketplaces such as sudo swap X2Y2 and X2Y2 either eliminated or made optional creator royalties in the last few months. The Cryptocurrency and NFT Bear Market Underway.
effect became more pronounced. Solanahere is the leading marketplace Magic Eden, with about 90% market share within the Solana network.sank and followed after other markets did the sameMany of these movements have only occurred in the last few weeks, but many NFT artists and creators have pushed back Oppose a “race to the bottom” that denies royalties.
“The growth of zero-royalty marketplaces has dampened the general willingness to pay royalties across the NFT space,” LooksRare wrote in today’s announcement. “While good news for traders, there is also a big downside. Moving away from royalties has taken away an important passive income stream for most creators.”
In addition to removing the required creator royalties and giving creators a portion of the protocol fees, LooksRare has shifted its overall trading reward model to primarily benefit NFT sellers on its platform. Currently, 95% of his token rewards generated by trading go to the seller and 5% to the buyer, in an effort to reduce the seller’s net transaction fees.
LooksRare launched in January, made a big splash We will use a reward model that provides users with LOOKS tokens and ETH for trading and using the platform. The market piled up his Ethereum NFT trading volume worth billions of dollars, but it soon became clear that users were manipulating the sale. wash trading.
In the NFT space, typically when users sell NFTs at artificially inflated prices across wallets they control, to manipulate reward models or increase visibility of a particular project. Wash trading occurs. A similar token game scheme has been rolled out on marketplace X2Y2 since it launched its own service earlier this year.
In late January, NFT analytics platform CryptoSlam reported about 87% of LooksRare’s trading volume to that point —Valued at over $8.3 billion— seems to be due to the wash trade.
X2Y2 or Blur,It has startedExcluding wash trades, Dapp Radar reports that LooksRare has processed less than $11 million in legitimate Ethereum NFT transactions in the last 30 days.
OpenSea, the leading NFT marketplace for all blockchains measured by transaction volume, still respects the loyalty of creators. In the last 30 days, he has generated $316 million in NFT trading, according to data from. Dapp Radar.
