Imagine this: A young artist from Mumbai, let's call her Priya, pours her heart and soul into creating stunning digital sarees for Decentraland avatars. She’s creative, she’s ambitious, and she believes the metaverse is her path to economic independence. She features her creations, looking forward to receiving her share of each sale due to the NFT royalties. Through her journey, she quickly discovers the age-old secrets of hidden fees and confusing payout models. It makes her feel like the system is rigged against her. Her dream starts to crumble.

This is not only Priya’s story — it’s an alarming trend in the metaverse. We’d all hear how these platforms were democratizing creativity, empowering creators, and building a new digital economy. Are they really? Or are they simply reproducing the house always wins power dynamics that are all too familiar to us?

Are You Really Getting Fair Share?

NFT royalties should be a game-changer. They're supposed to ensure that creators receive a percentage of every subsequent sale of their work, providing a passive income stream and incentivizing innovation. It’s the online equivalent of a musician getting paid every time their song is played on the radio. In theory, it’s beautiful. In practice, it's often a mess.

Sandbox, Decentaland, Otherside – they all promote advantages of creator economies, asset ownership. However, let's lift the veil and take a look behind their royalty schemes. Are they transparent? Are they equitable? Ultimately, and most importantly, are they doing a good job enriching the lives of the creators who are making these increasingly complex virtual worlds?

Creators find it especially hard to understand complex fee schedules. They struggle to wade through convoluted payout processes, often walking away with much less than they were led to believe. It’s not only the principle that there is no free lunch. This isn’t just about fairness and transparency, it’s about making sure that the metaverse truly is the paradise it’s promised to be, empowering new generations of creators.

Hidden Fees, Hidden Agendas?

Let's get specific. Take Decentraland, for example. Though they promote royalties, the actual roll-out leaves plenty of room for opacity. What percentage are they taking? And how do gas fees affect creator earnings across the board — particularly those minting on Ethereum? And what of the creators who aren’t tech-savvy and can’t wrap their minds around the blockchain complexities? They’re too often kept in the dark, open to exploitation.

The Sandbox, as a content-driven platform heavily dependent on user-generated content, is no different. While they offer tools for creators to build and monetize their experiences, the royalty structure can be confusing, and the platform's reliance on LAND ownership creates a barrier to entry for many. Envision a digital landlord nightmare. The billionaires are doing better than ever, and creators are left to scuffle in the gutter to make a living.

Otherside, Yuga Labs’ metaverse project. Specifically, the series of early land sales and subsequent trading activity are raising eyebrows. These advances have led to pressure points of wealth concentration and concerns over the risks of insider trading. Are royalties actually being distributed in a fair manner or mostly going to the early adopters and whales?

Royalty royalties are a place to start. Platforms need to do more to ensure their platforms are accessible, transparent, and equitable for all creators regardless of their socioeconomic status or technical know-how.

The Metaverse Has A Royalty Problem

It’s not only a group of cranky musicians. No, this isn’t some doomsaying about the long-term sustainability of the metaverse. If creators feel exploited, they'll leave creative-class talent to other states if they don’t smarten up. And without these creators, these virtual worlds will fade into empty shells, void of culture and imagination.

According to McKinsey, the metaverse will create an estimated $5 trillion of value over the next few years. But who will benefit from this wealth? Will it be the workers, the consumers and citizens, or the big early investors, the platform owners and the tech titans. Are we really going to let techbro entrepreneurs invent these new virtual realms—these Metaverses—completely on their own? Or will another actor fill that void instead?

I’m NOT arguing that these platforms are maliciously out to fleece creators. And I think it’s time we re-assess their royalty regimes. Reforming them will be a huge step towards transparency and fairness. At the very least, they need to pay attention to what creators are saying, work to fix these hidden fees and make payment out processes easy.

We need to demand better. We need to hold these platforms accountable. Let’s make sure that the metaverse coalesces around this vision and helps creators realize their full potential. Join us to foster a more equitable digital economy. Otherwise, it’s the same tired tale told anew with the prettiest VR goggles around.

  • Transparency: Platforms need to provide clear and concise information about their royalty structures, including all fees and charges.
  • Accessibility: Royalty payouts should be easy to access and understand, even for creators with limited technical expertise.
  • Equity: Platforms need to ensure that royalties are distributed fairly, regardless of a creator's background or social status.
  • Community Input: Platforms should actively solicit feedback from creators and involve them in the decision-making process.

Don't let Priya's story be repeated. Let’s work together to create an inclusive metaverse that respects creators and pays them what they deserve. Together, we can create a truly democratized metaverse.

Don't let Priya's story be repeated. Let's build a metaverse where creators are valued, respected, and fairly compensated for their work. Let's build a metaverse that is truly democratized.