NFT Creators on the Ethereum Blockchain Have Received Over $1,800,000,000 in Royalties: Galaxy Digital
New research from crypto investment firm Galaxy Digital shows that non-fungible token (NFT) creators on Ethereum (ETH) have received nearly $2 billion in royalties.
In a recent blog post, Galaxy Digital finds that over $1.8 billion worth of royalties have been paid out to NFT creators on ETH, while creators on OpenSea, the world’s largest NFT marketplace, have seen their royalty numbers double since last year.
“Over $1.8 billion in royalties have been paid to creators of Ethereum-based NFT collections. In addition, the average royalty percentage paid to creators on OpenSea, the platform that has paid the most royalties to creators, has doubled from 3% to 6% over the past year.
The crypto firm also finds that a small number of NFT collections account for the majority of all NFT royalties earned so far.
“Major brands in NFTs, across both legacy players and crypto-native organizations, have raked in hundreds of millions of dollars in revenue from royalties generated on secondary sales. In fact, only 10 units accounted for [for] 27% of all royalties earned and 482 NFT collections accounted for 80% of all royalties earned so far.”
According to the report, there has been an ongoing debate about whether NFT royalties should exist. Proponents argue that content creators should be compensated for their works becoming more popular over time, while those against them argue that the enforcement of royalties would fundamentally change how NFTs work.
The research cites Solana (SOL) co-creator Anatoly Yakovenko, as previously so that the enforcement of royalties would divide the ownership of digital collectibles between users and NFT creators. According to Yakovenko, creators will be able to use smart contracts to reclaim NFTs in case users don’t pay royalties.
“To implement [NFTs] directly in the technology, the concept of “ownership” must change. NFT is not fully owned by the user or creator. The creator must retain certain rights to effectively enforce royalties.“
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Featured image: Shutterstock/Galkin Grigory
