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Frank announces that DeGod’s ecosystem runs on 0% royalties
DeGods, the most successful Solana project to date, updates all their NFTs to 0% royalties! Founder Frank DeGods released the statement via Twitter, making waves among NFT collectors. This controversial decision also raised questions about what NFT royalties actually are and their importance in the NFT space.
Before we get into that, though, let’s answer today’s key question:
Why did Frank DeGods choose 0% royalties?
On October 9th, leading Solana-based project DeGods made a shocking announcement. Starting today, all of the team’s NFTs go for 0% royalties. In comparison, the DeGods collection used to feature 9.99% royalties. Accordingly, the change has been applied to DeGod’s NFTs. However, y00ts and t00bs will also have their royalties updated soon, Frank DeGods said.
Surprisingly, creator Frank DeGods didn’t offer many explanations either. “We believe this is the best decision for our business at this time,” he wrote in a tweet. “It is time for us to take a new approach.”
But is this approach the right one? That’s exactly what the NFT community is discussing right now – here’s their takeaway:
Of course, DeGod’s decision to opt for 0% royalties is controversial. Many members of the NFT community are concerned about the project’s financial future. In fact, some believe the change could reduce the project’s value over time.
“You don’t see Apple lowering the cost of iPhones for a reason, this is a digital asset market and I want my digital asset to have as much value as possible. I want the creators to have billions because over time that value will flow to the holders,” collector @xX1TopShotxx said in a tweet.
Meanwhile, other users simply believe that DeGods has already “made enough money” and that their decision is morally correct. After all, DeGods is the most successful Solana project, garnering over $6 million in secondary sales alone.
All in all, there is still a lot of interest in the DeGods project – with or without royalties. So why is everyone still debating this change so intensely?
Why do NFT royalties matter so much?
Essentially, NFT royalties are the payment NFT creators receive every time someone sells their digital assets on a marketplace. Royalties exist in all domains, but with NFTs they are basically a percentage of each NFT sale. In this case, each creator gets to decide the royalty he must receive for the project.
Most of the time, royalties vary between 5-10%, although it is not a rule. For example, DeGod’s NFTs had a 9.99% royalty before theirs latest update. To conclude, only time will tell the impact of this decision on DeGod’s NFT collection. In the meantime, learn more about their latest drop, y00ts NFTs, in our in-depth post!
