A new research report released today from Mike NovogratzDiscovered by Galaxy Digital of ethereum NFT creators have received a total of $1.8 billion in royalties from secondary sales on marketplaces such as OpenSea.
in the reportGalaxy Digital researchers Sal Qadir and Gabe Parker also NFTs Creator royalty rates on OpenSea (the top overall marketplace by transaction volume) have averaged double over the past year, jumping from 3% to 6% of sales.
Researchers also found that royalties were concentrated in just 10 entities. The data suggests that the NFT economy may be more centralized than some thought.
The top 10 companies earned $500 million worth of royalties, representing 27% of all Ethereum NFT royalties. According to a report that relies on data from flip side cryptoa collection of 482 NFTs collectively earned 80% of all market royalties.
NFTs— Own blockchain token means ownership—usually the first “castor sold on third-party websites developed by NFT creators or via dedicated launchpads available from certain marketplaces. After minting, NFTs can be resold through markets such as: high seasMagic Eden, Lux Rare, and others.
Boad Ape Yacht Club Creator Yuga Labs takes the top spot on the list with the most NFT royalties earned.of $4 billion startupexpanded its focus to development blockchain gameearns well over $147 million in royalties alone.Given Yuga’s massive physique, it’s not surprising other side Metaverse Land Mint earlier this year $561 million Total sales in just 24 hours.
New NFT marketplaces are still popping up regularly, but OpenSea still accounts for the majority of all NFT resale. data from Dune analysis Galaxy reports stating that OpenSea has more than 80% of the total Ethereum NFT marketplace.
When creating NFT projects through OpenSea, creators can: Please select a percentage of royalties they want to receive secondary saleThese creators have earned a combined $76.7 million in royalties from sales to date. Measured together, it’s well-deserved third on the Galaxy’s list.
Other notable NFT creators on the list include Chiru Labs (Azuki), evidence (Tsukidori and Proof Collective), and the team behind sandbox, doodleand Gary Vaynerchuk’s VeeFriends.
Quote another dataset Focus on legacy brands only, highlight Galaxy Nike As a top earner with revenue worth $91.6 million. That list includes his NFT products from RTFKT’s digital studio, RTFKT’s various non-Nike brands. Acquired by Nike in 2021Other brands on the list include Dolce & Gabbana, gucciand Adidas.
Loyalty rumblings
Historically, royalties have important part NFT ecosystem that provides creators with a stable stream of income continue to develop Various plans for the “roadmap” of the project. For example, creating a video game, hosting a token gate party, hiring more moderators for his community, etc.
What do you think is obvious to me about NFT royalties?
1. A very good mechanism for creators to earn extra income
2. If it doesn’t apply directly to technologies, the market moves around them.
3. Must be clear to the user 🧵— toly 🇺🇸 (@aeyakovenko) October 14, 2022
Qadir and Parker call loyalty “the core value proposition of NFTs,” but at the expense of the principles of decentralization and self-management, values cherished by many crypto advocates. We also acknowledge that royalties cannot currently be enforced on-chain without a license.
On-chain royalty enforcement triggers a new kind of blockchain trilemma, perhaps not entirely unlike the one Ethereum co-founder Vitalik Buterin has. Discussed Finally, rival platform Algorand claim it solvesIt has historically been up to centralized NFT marketplaces to choose to implement creator-imposed royalties instead of on-chain implementation.
NFT usage fees have been the subject of much debate this month.The pseudonymous Solana NFT creator Frank has made the decision to remove royalties from DeGods and y00ts Profile picture NFT This movement is called “experiment”.
His move was to either ignore creator royalties or let traders choose whether to pay them or not as the Solana marketplace grew. By not paying the creator a royalty fee, the NFT seller typically avoids paying his 5% to his 10% cut of the secondary sale price.
Finally, the top Magic Eden on the Solana Marketplace announced last week Thereafter, following this, making royalty payments optional. lose significant market share to a rival platform. “We understand that this move will have a serious impact on the ecosystem,” said the market. Said On Twitter, he added that he hopes there will be a “new standard to protect loyalty.”
Some on Twitter criticized Magic Eden’s decision, writing, “So far, worst decision“When”desperate grasp for market share. Metaplex, the creator of Solana’s current NFT standard, said Thursday that it is developing a new standard that can enforce royalties on-chain.
As the debate over NFT royalties rages on, one thing is certain. Giving up royalties means creators are giving up a significant passive income stream.
