LooksRare jumps on the NFT zero-royalty bandwagon, details inside
The abolition of creates royalties of large Non-Fungible Token (NFT) pools, marketplaces and platforms is a developing trend in the NFT industry.
In a similar move have Ethereum NFT marketplace, LooksRare, recently announced that it would no longer force traders to pay royalties on transactions. This declaration was made on 27 October. As a result, they were effectively included in platforms and collections that promoted the zero royalty trend.
Understand the NFT royalty concept
The primary sale of NFTs and ongoing, perpetual royalties from secondary trades are the two main sources of income for NFT developers.
Depending on how the market executes the transaction, royalties are often set at a certain proportion of the NFT price paid by either the buyer or the seller. The creators decide the royalty percentage, which is usually set between 5% and 15%.
LookRare said royalties to creators will henceforth be optional, as did other platforms and collections that joined the zero-royalty bandwagon.
Unlike the previous fixed nature of the fees, buyers would now be allowed to decide whether they would choose to pay the royalty or not.
A similar policy was also recently revealed of Magic Eden, although it seemed to be a choice they didn’t particularly enjoy making. The buyer in each transaction would decide whether to pay the royalty or not, according to Magic Eden’s alternative strategy.
It is handled more like a tip to the creator by giving buyers the option to not pay royalties. In one of the last steps earlier in October, DeGods adopted same policy, which would apply to other collections it had.
Twitter to enable NFT viewing and trading
Meanwhile, on October 27, social media site Twitter as well announced that, in partnership with four marketplaces, it would enable users to instantly buy, sell and view NFTs through tweets.
The connection, known as NFT Tweet Tiles, included a button that allowed users to link to a marketplace item while displaying an NFT’s artwork in its own panel within a tweet.
The four marketplaces incorporated into the testing phase of this functionality from Twitter were Magic Eden, Rarible, Dapper Labs and Jump.trade.
In terms of transactions, 2022 was not the best year for the crypto business, and NFTs in particular, as many reports indicated that trading volumes had fallen.
The move towards zero royalties may be related to consumers’ perception of NFTs as unprofitable. Because there is a widespread perception that NFTs are only good for art, they have received a lot of criticism.
However, NFT’s extensive applications will be more widely accepted and perhaps this will change how people view the sector.
