Frank DeGods is out. Sales are up. What does it all mean? It's not just about a leadership change; it's a canary in the coal mine for the entire NFT royalty structure. The recent sales spike in DeGods NFTs on both Solana (101% increase!) and Ethereum (a whopping 156%!) following Frank's departure isn't just a coincidence – it's a wake-up call.
Royalties: A Broken Promise?
The initial promise of NFT royalties was revolutionary: creators would perpetually benefit from their work, receiving a percentage of every subsequent sale. Sounds good, right? In theory, yes. The result of the system is that it consistently favors early adopters and founders. Consequently, it fails to serve the wider public and real creators.
Think about it. The result is that early investors rush in, inflating the floor price. They then flip their invested assets, making bank and adding to the royalty flow that primarily rewards the creator—and sometimes, these investors themselves. This is not in itself a bad thing, but is it equitable?
Maybe that’s why the market reacted so enthusiastically to Frank’s departure. Was it an implicit vote of no confidence in the prior leadership’s vision for how to distribute royalties? Or it’s the concern that the royalty model is so brittle that it’s prone to one-person vulnerabilities. Is it the promise that this new leadership, 0x_chill and Pastagotsauce, will bring a more sustainable or community-focused vision?
Data Demands A New System
A 17% increase in total NFT sales volume over the past week is no joke. It's the DeGods numbers in particular that are the intriguing wrinkle. It's a clear market signal: the community is reacting, and reacting strongly.
The data screams opportunity. A chance to reconsider how royalties are allocated. A rare opportunity to better align public incentives with the long-term health of these expensive projects and the communities they’re built in. An opportunity to solve one of the biggest issues in the NFT space: equitable wealth distribution.
Imagine if a share of these royalties were deposited straight into community projects. Imagine if artists were paid more than 5% on secondary sales. Imagine if a small percentage was earmarked from the outset for social causes related to the project’s spirit. Just picture DeGods royalties going towards a web3 art education program or an environmental initiative to support the real world. That's how you build a legacy.
This isn’t just for good vibes on LinkedIn – it helps to build a thriving ecosystem. A system that works for all, not just the privileged few. A system that delights first-time users and builds return user trust and loyalty. A production-grade identity system that mainstreams the decentralized ethos behind Web3.
South Asia: A Model For Change
I’ve long been interested, particularly, in how this shift could open space for new South Asian crypto communities. With this new program, we have a rare chance to start fresh, to do better by taking note of where we’ve gone wrong. Imagine an innovative NFT initiative supported by South-Asian creators. This program sends the royalties directly to local creatives, helps fund after-school education initiatives, and uplifts disenfranchised communities.
- Community Focused: Prioritize royalties to community-led initiatives.
- Artist Empowerment: Increase royalty percentage for artists on secondary sales.
- Social Impact: Allocate a portion to social causes.
We have the know-how, the will, the innovation. What’s required is just the desire to build a better, more equitable and sustainable future. The DeGods situation presents a case study. Let's not waste it.
With the announcement of Frank dropping the DeGods collection, this spike in sales is not an anomaly. It’s a positive indication that the market is craving for something different. The old royalty model is broken. Let's build something better. Let's build something that truly reflects the values of the Web3 community: fairness, transparency, and shared prosperity. And let's start now. What do you think?
