NFT Royalties Are Broken Tezos Shows Us The Fix

The NFT space promised a revolution for artists, a direct line to their fans, and a fair cut of future sales through royalties. To be fair, let’s acknowledge that the world in practice is chaotic. Royalties are so broken that artists are literally getting robbed. So let’s cut the shit once and for all — it’s not and we know it.

Who's Really Benefiting Here?

The current system puts too much expectation on the goodwill of marketplaces. That’s akin to relying on a fox to protect the henhouse. And yet, marketplaces can and do choose to ignore their royalty obligations — there are few mechanisms for artists to push back. Instead, we’re witnessing a race to the bottom, where royalty-free marketplaces are becoming popular, and in turn, devaluing creators’ work. Where's the awe in that? It's infuriating!

And being South Asian, I’ve felt the repercussions of this policy and seen firsthand how it has devastated creators. Now, picture spending six months producing a web-based work of art. Now, imagine seeing it get traded away and you get nothing for it. The hope for financial autonomy via NFTs becomes yet another gram of commodification and exploitation. This isn’t only about compensation, this is about respect, acknowledgment and giving artists the opportunity to be self-sufficient.

And what about the "blue-chip" NFT projects? They expanded their empires on the backs of creators, frequently paying for early adoption by using the lure of royalties to enrol new artists. Now, some are quietly abandoning those promises. It's a betrayal, plain and simple. This is more than a technical challenge, it’s a moral imperative.

Royalties Should Be Unbreakable Code

The answer isn't more unenforceable agreements. It’s hardcoding royalties directly into the smart contract, rendering them unchangeable. This is where Tezos comes in. Tezos offers a compelling different path. It’s a blockchain dedicated to building a long-term ecosystem that works for creators, not just creating short-term excitement.

Think of it like this: imagine a physical artwork with a built-in mechanism that automatically sends a percentage of every resale to the artist. Now, that’s the power of smart contracts done right. Tezos, with its emphasis on formal verification and on-chain governance, offers the technical means to realize this dream.

Platforms like Hic et Nunc (even in its past form), AkaSwap, Objkt, and Teia demonstrated the potential of a community-driven, artist-focused NFT ecosystem on Tezos. They proved that it's possible to prioritize transparency and support artistic collaborations. These platforms are more than marketplaces – they are communities.

Tezos Is Not A Silver Bullet, But...

Let's be realistic. Tezos isn’t interfering magic too, it’s not a magic wand that will solve everything overnight. There are critical challenges to be addressed, starting with adoption and education. It provides a radically better alternative, one that centers artists.

What sets Tezos apart as a project is its commitment to sustainable longevity. Ethereum’s energy-efficient Proof-of-Stake (PoS) consensus mechanism is perhaps the biggest draw, attracting artists and collectors who are conscious of their environmental impact. This transcends our need to save the planet. It’s about making sure that our future is one in which digital art isn’t destroying the planet.

The low transaction costs? That’s massive, particularly for artists from developing countries who could be otherwise cost prohibitive from joining other platforms. It opens up the playing field, allowing anyone who can come up with a promising idea to participate.

Yet Tezos isn’t stopping at art, moving into gaming, and even sports partnerships like the current one between Man U and Tezos. Now, picture a world where athletes earn a share every time their digital collectibles are resold. That’s blockchain’s potential to transform entire sectors and give strength back to the people.

Tezos' real potential lies in its community. It’s this connective tissue of developers, artists, and collectors who are truly invested in creating a real, positive, long-term future for NFTs. It’s not merely about ensuring that everyone gets their fair share of revenue—it’s about establishing a more equitable, transparent, and sustainable ecosystem.

We need to demand better. We must invest in platforms that support artists while enforcing fair royalties. We need to look at alternatives, such as Tezos, that present a viable route to a greener future for NFTs. Now it’s time to go back and repair what’s broken and actually create a system that empowers creators in the way they deserve. The pressure of artists having to make a living must not be an obstacle for the production of great art.