This is the first, but self-inflicted wound on the whole blockchain gaming ecosystem. We're so busy chasing short-term gains – a quick bump in trading volume, a marginal decrease in fees – that we're completely ignoring the long-term devastation we're unleashing on the creative lifeblood of the industry. However, burning the actual furniture will only temporarily convince your residents that they’re safe and warm. Before long, all you’ll have is a pile of ashes.

Are We Killing The Golden Goose?

Let's be blunt: NFT royalties are the lifeline for many blockchain game developers and artists. They are the motivator to experiment, to invent, to stretch the limits of what can be achieved in this arena. Think of it like this: you wouldn't expect a traditional game developer to give away their game for free and rely solely on the "goodwill" of players to keep them afloat, would you? So why are we holding blockchain gaming to a different standard?

The argument that by removing royalties it reduces barriers to entry and creates greater trading volume is a siren song. Yes, you could argue that you would get an initial bump in volume as arbitrageurs rush to mediums that have zero-fee models. But at what cost? What if the creators—the ones building the games and assets fueling this trading volume—give up? Will they conclude that it just isn’t worth their time and trouble anymore? They'll leave. Otherwise, they’ll return to AAA development, or switch to other endeavors where their labor is truly appreciated. Then what will you trade? Ghost towns and empty servers?

  • The Short-Term Trap: Increased volume, lower fees.
  • The Long-Term Reality: Creator exodus, empty games.

We’re discussing an industry that’s anticipated to grow to $2.721 trillion by 2035. That kind of growth requires investment. And royalties are the most basic way that we can invest in the creators who will lead that growth. Starving them of this growing revenue stream is not only shortsighted, it’s economic suicide.

The Financial Exploitation No One Talks About

There's a dirty little secret in the NFT space: many creators aren't financially sophisticated. They're artists, developers, visionaries. They put everything they have into their projects when most of them don’t have much to begin with. Royalties provide a predictable income flow, allowing them to better ensure they can keep the lights on. This competitive financial support enables them to continue to deeply pursue their passions.

When marketplaces and platforms passively, unilaterally, or even actively decide to reduce, remove or stop enforcing royalties, they’re taking advantage of this weakness. They're preying on creators who may not understand the long-term implications of these changes, or who feel powerless to resist. It's a form of digital sharecropping, where the platform takes the lion's share of the profits while the creator is left with scraps.

This is not only the right thing to do because its fair, but we can’t afford not to. It’s about giving creators a just appreciation of the work that they do and preventing the abuse of their creative endeavors. Are NFT royalties the perfect system? Maybe not. But they're a hell of a lot better than the alternative: a race to the bottom where only the wealthiest and most ruthless survive.

Social Good Drowning In Short-Sighted Greed

Blockchain gaming will change the gaming world. That’s because it holds the potential to transform our understanding of digital ownership, as well as the ways value is created within digital spaces. It can enhance player agency and reward creativity. It can create fairer and more sustainable economies. That potential is being wasted through this unending focus on short-term profits.

We should all begin to reframe how we think about blockchain gaming and move away from the get-rich-quick narrative. If we want to succeed, we need to admit how multi-layered this ecosystem is. If we care about the health of that ecosystem, we need to care about the health of its creators.

There are alternatives. We don’t need to cede this race to the bottom. Together we can innovate toward the future of blockchain gaming! Together, we can better value creators, reward great innovation, and unlock the full potential of commercial advances for social good. That takes some serious change in thinking. It challenges us to move away from the transactional mindset of self-serving traders and towards that of conscientious stewards of a disruptive evolution in technology.

  • What if instead of eliminating royalties, we found ways to increase them?
  • What if platforms competed not on the lowest fees, but on the highest creator payouts?
  • What if we created a system of grants and sponsorships to support independent blockchain game developers?

The choice is ours. Do we really want to kill the golden goose for a short-term meal? Or do we invest in it and reap the benefits for decades to come. The future of blockchain gaming hangs in the balance with that question.

The choice is ours. Do we want to kill the golden goose for a quick meal, or do we want to nurture it and reap the rewards for years to come? The future of blockchain gaming depends on the answer.