Tuesday, September 19, 2023
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Royalties Chaos Shows Ethereum NFT Market ‘More Serious’ Than Solana: Fidenza Artist Tyler Hobbs

in a nutshell

  • Generative NFT artist Tyler Hobbs said: Decryption Regarding recent market changes regarding respect for creator loyalty.
  • The most notable Solana NFT marketplace, along with some Ethereum marketplaces, make royalty payments optional.

of NFTs The space is shifting amid the ongoing crypto bear market as many marketplaces choose to either ignore whether to pay creator royalties or let traders choose. .Controversy over royalties raged for months Popular among artists and collectors, the trend is now rapidly taking hold in parts of the NFT industry.

On Friday, the last major domino Solana NFT market as magic eden— By far the largest marketplace on Solana — Creator loyalty is no longer requiredafter that lost significant market share For start-up companies that hate royalty. Nearly all Solana NFT marketplaces with significant market share either deny royalties or make them optional. This means that his NFT traders on Solana no longer have to pay his 5% to 10% commission on each trade. This may improve profit margins for sellers, but at the expense of revenue for project creators and founders.

ethereumis still the largest blockchain platform for NFTs and has seen markets for: X2Y2 and Sudoswap gain momentum Because they push back royalties to some extent.However, the top marketplace high seas The Ethereum market, like other markets, respects creator loyalty, so the fee “race to the bottom” is not as prevalent as the Solana market.

Many artists oppose marketplaces that deny royalties. Tyler Hobbs is a generative artist who creates something worthwhile. art block: Fidenza Collection and Collaborators New QQL projectboth minted in Ethereum.

He said Decryption While the Ethereum market may similarly reject large-scale royalties this week, he sees a different kind of sentiment among both creators and collectors compared to Solana.

“I think the Ethereum space is really more serious,” he said. “Serious artists and serious collectors tend to be more on Ethereum than on Solana.

Many of the NFT art markets exist on Ethereum, which has a thriving scene thanks to platforms such as generative art project Art Blocks and single-edition artwork marketplaces. super rareSolana’s artwork market isn’t that big or worth it. That his NFT space is occupied by his collection of profile pictures and his NFT projects of video games.

Solana NFT’s artwork-centric marketplace, Exchange Art, has been vocal in its denial of movements such as Magic Eden.platform tweeted on saturday It said marketplaces’ refusal of royalties “has broken the social contract,” and said it would provide tools that allow creators to block trading of NFTs on such marketplaces.

Solana’s move away from respecting creator loyalty may also affect future developments in this field. Tom, the creator of Taiyo Robotics’ NFT project, tweeted today Speaking to project creators who are switching to Ethereum, he says primary sales prices are on average higher and that “people are mostly happy to pay royalties on secondary sales.” .

“In my opinion, this is the biggest threat to 0% royalty progress,” continued Tom. “What are the incentives for new creators to come to his SOL? They already usually make less money from Mint here for quality projects, but now no royalties?”

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Hobbes and his QQL Collaborator Dandelion Wist is already committed in terms of royalties. QQL smart contract— or autonomous, decentralized code Web3 App—Contains a blacklist that prevents listed Ethereum marketplaces from interacting with that NFT on behalf of its owner. QQL NFTs cannot be sold through these platforms.

QQL launched in late September and is doing well Primary sales of approximately $17 million,addition Over $28 million Secondary market sales to date. X2Y2 never processed the latter transaction due to blacklisting. complained in the tweet threadThis suggests that Hobbes and Wist were violating the owner’s property rights in a coded way.

Hobbes said Decryption Not only from NFT artists who might otherwise consider similar tactics, but also collectors who understand the benefits of supporting artists by paying a fee when selling their work on the secondary market. He said it has also seen a broadly positive response.

“I think they understand that it’s really in the artwork’s best interest to give the artist more stability and give the artist a little more power, and that everyone benefits from doing it right. “People have been very supportive.”

Hobbes, of course, has a real stake in the discussion as an artist.He became a central figure in the NFT art world with last year’s release Fidenza by Art Blocks— A collection of 999 Ethereum pieces, each generated by an algorithm deployed on the blockchain.Fidenza has produced some seven-figure salesthe cheapest NFT currently available is listed at around $128,000.

Hobbs’ success in the NFT space, coupled with the recent launch of QQL, has been greater than most other artists. However, he strongly believes that ongoing loyalty is essential to the fairness and long-term stability of all creators in the Web3 space.

“This is one of the biggest positive changes NFTs have made for artists compared to the traditional art market,” Hobbs said of the royalties. “I think it’s really a tragedy for them to run away. It makes such a difference in the lives of artists and how much more opportunities artists have to support themselves through their work.”

defend the royalties

Currently, both Ethereum and Solana NFT royalties cannot be fully enforced on a technical level, but developers are working on potential solutions to do so. acknowledged that it is possible to overcomeHowever, the NFT standard and smart contract It may allow for stricter loyalty methods.

“One of the great things about NFTs and Web3 is that more power is in the hands of creators. There’s always a way around it,” he said. However, he acknowledged that it is a “relatively easy” step that other creators can take to discourage “disagreeable behavior.”

Ultimately, however, we do not believe that NFT royalty enforcement will come down purely to code. Collectors need to understand why artist royalties matter, and platforms and marketplaces need to reach a similar cultural consensus, he said.

“It’s not a technical issue, it’s a cultural issue,” Hobbs says. “We need to explain culturally why this is a valuable policy for us, and I want to be part of that discussion. It takes time for these cultural norms to really evolve and harden.” I think.”

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