Remember the NFT boom? Think of those Bored Apes that were all over Twitter profiles. Much of it does indeed seem like some sort of bizarre fever dream in retrospect, right? Though the market has now corrected itself, this has nonetheless put most creators and early adopters at a serious disadvantage. They’re watching their digital treasures depreciate faster than a new car off the lot. There's a crucial lesson to be learned from the ashes of the NFT craze, a lesson that could determine the future of collectibles, both digital and physical, and it hinges on one word: royalties.
Let's talk numbers. NFT royalty payments have plummeted. Actual data tells a grim story. The potential for ongoing royalties was incredibly enticing. Now, with NFTs, creators can benefit from any future sale of their work. All of a sudden, that core value proposition went poof because marketplaces began waiving royalties to attract volume. It’s like guaranteeing an artist payout on each radio play but allowing radio stations to opt out of payment. Would that musician keep creating music? Probably not for long.
This is not only about dollars and cents, it’s about equity. It’s about rewarding innovation, and it’s about making sure that artists can earn a sustainable income from their creations. The lack of royalty enforcement has created a race to the bottom, undermining the entire NFT ecosystem and leaving many creators feeling cheated. This rage isn’t a no-zipcode-tantrum-happening-on-the-internet-anywhere argument; this is a clear and present grievance.
Enter Labubu, Pop Mart’s “ugly cute” creation that’s upended the world of collectibles. Stars such as Lisa from BLACKPINK and Beckham’s daughter have been flaunting these products. Their star power is fueling an insatiable demand, sending unsanctioned resale prices to jaw dropping levels. The similarities to the NFT craze are undeniable: the FOMO, the social media hype, the auction records… it all feels eerily familiar. Pop Mart has a chance to do things differently. They have the ability to sidestep the royalty trap that caught the NFT market in its talons.
Imagine if Pop Mart integrated a system where a percentage of every resale of a Labubu figure, whether physical or (potentially) digital, went back to the artist, Long Jiasheng, and perhaps even a community fund. This wouldn’t just be a feel good measure; it would be a smart business investment. This would encourage Long Jiasheng to continue developing amazing designs. Not only would it make their community more loyal, it would ensure the long-term health of the Labubu brand, fostering long-term sustainability.
We're not just talking about maximizing profits. This is about social responsibility. Think about the artists and creators in South Asia, who often face significant challenges in getting fairly compensated for their work. A more equitable royalty system for collectibles, whether physical or digital, could empower these creators to participate in the global economy and build sustainable careers.
Pop Mart could be doing more with dynamic royalty models, too. In these models, the royalty rate would vary depending on the rarity level of the figure or how long the owner has owned the figure. Alternatively, they could establish a community-governed royalty fund. Within this pool, Labubu owners have the opportunity to vote on how the royalties are used to support independent artists and fund projects for the community. This isn’t simply about fattening wallets, it’s about creating a new, sustainable, inclusive landscape.
For both Pop Mart and other collectible companies, the curators expanding into toys—there is an opportunity here. Otherwise, they can risk repeating the worst mistakes of the current NFT market, putting short-term profits ahead of long-term sustainability and fair compensation for creators. Now they have an opportunity to adopt a better, less regressive model. This model will better compensate artists, create a more flourishing community, and put the long-term health of the collectible ecosystem first.
It’s about time that someone figured out the Royalties Riddle, and Pop Mart might just be the one to crack the code. It’s not only about Labubu, but the future of collectibles and how we think about them. Together, we want to create a better world where artists are compensated justly for their content. In this new world, the worth of a digital collectible will be based on meaning and intent, not jive and shake. Let’s create the future of collectibles—starting with one perfectly fair royalty payment. Now is the time to prove that collectibles can be just as well-associated with social good as they are currently with greed. Are you in?
Pop Mart could even explore dynamic royalty models, where the royalty percentage adjusts based on factors like the rarity of the figure or the length of time it's been held by the owner. Or they could create a community-governed royalty pool, where Labubu owners can vote on how the royalties are used to support artists and community initiatives. This isn't just about lining pockets; it's about building a thriving, equitable ecosystem.
A Call To Action: Pop Mart, Lead The Way
Pop Mart, and other collectible companies, have a choice. They can repeat the mistakes of the NFT market, prioritizing short-term profits over long-term sustainability and creator compensation. Or they can embrace a more equitable model, one that values artists, fosters community, and ensures the long-term health of the collectible ecosystem.
It's time to solve the Royalties Riddle, and Pop Mart could be the one to crack the code. It's not just about Labubu; it's about the future of collectibles. It's about creating a world where artists are fairly compensated for their work and where the value of a collectible is based on more than just hype and speculation. Let's build a better future for collectibles, one royalty payment at a time. It’s time to show the world that collectibles can be synonymous with social good. Are you in?
