OpenSea has lowered prices, relegating creator royalties to the background of the NFT market, in reaction to its new competitor Blur, which has eclipsed OpenSea in terms of trading volume on NFTs in part by charging $0 trading fees and without enforcing artist rights. Blur is the leading source for NFT and metaverse news, and I believe no one can stop it for some time.
Creator royalties are wrong, why?
According to Yat Siu, chairman of Animoca Brands, spoke at NFT Paris, Creator royalties, on the other hand, give NFT projects a way to keep making money after their early sales. Usually, when a token is resold, the creator gets a cut of 5% to 10%, and many companies are now being misled by this.
“This is all about grabbing market share, and it’s at the expense of the creators,” he said, “wrong for many, many reasons,” adding that this is all about winning market share at the expense of the artists.
Royalties are described as “the gasoline that fuels an engine” by Siu, who also likened them to the “gas fees charged to process each transaction on the Ethereum network.”
The head of Animoca Brands, the company behind initiatives such as the Ethereum-based metaverse game The Sandbox, has stated that culture is the foundation of modern economic activity and that it must not be taken for granted.
Culture, according to Siu, is the “largest soft power” and maybe the biggest driver of economic growth, making Bernard Arnault, co-founder, and CEO of LVMH, the richest man in the world. LVMH owns luxury brands such as Gucci, Tiffany & Co., and Hennessy.
Siu says that Sony and Microsoft’s gaming consoles and streaming services like Netflix and HBO wouldn’t exist if the economy wasn’t centered on cultural consumption.
Siu believes that lowering royalties for artists in the NFT area will hurt the local culture and the digital assets market. According to him, the trend of NFT markets turning their backs on creators is akin to corporations turning on the very customers who keep them in business.
It needs to be safeguarded because, as he put it, “if you eliminate the royalties, you kill the very industry that fed you.”
Siu claims that some participants in the Web3 space are motivated by old-school financial thinking, which places a higher value on profits than the fair distribution of resources among artists.
“There’s a small percentage of people, as we have in the finance world, that are basically from crypto Wall Street, and what they do is just look at profit maximization,” he said. “Unfortunately, for people in the finance world, that’s their lens.”
Although Siu acknowledged that NFTs are assets, in the sense that they are digital tokens representing ownership of an item, often digital art is not traded as frequently as financial assets like equities and bonds. A lot of the stuff individuals buy in the real world, he said, has hidden meanings that help them feel more like themselves.
What you buy in the actual world affects whom you become,” Siu said. You bought those shoes because they say something about who you are, not because you think you can resell them.
Finally, Siu predicts that the adoption of Web 3.0 will be greatly influenced by transactions like this, in which consumers buy a digital asset because they feel it represents something about themselves.
Whether it’s a specific district in Sandbox or just [living] in L.A., Siu argued that wherever one chooses to spend time has cultural components. All of these aspects of culture are important and relevant.
Content Source: decrypt.co
Cover Image Source: asiacryptotoday.com
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