After a remarkable 3.5-year run, Solsniper, the Solana-based NFT marketplace has closed its doors. The last curtain drops on June 13, 2025. NFTs are to be delisted with bids refunded and leaderboard data stored for future community incentives. Solsniper’s not going out of business completely as they looked ahead they’ve decided to pivot to the wild west land of AI tools and memecoin trading bots. The core reason for pulling the plug on their NFT marketplace stings: it just wasn't sustainable. Should we take Solsniper’s downfall as a red flag? It could uncover a critical, systemic defect that undercuts the supposed bedrock of NFTs’ worth. I think it is, and it all boils down to one word: royalties.

Are NFT Royalties Dying Out?

Let's be blunt: the NFT royalty debate is a messy brawl. As a result, marketplaces have been cutting or eliminating royalties in order to lure traders away. In doing so, they promise lower fees and greater trading volumes. On one side, you have the potential enforcers of these royalties, which are creators, the ecosystem’s lifeblood, earning less and less by the day. It’s a rigged tug-of-war, and the rope is unraveling. Look no further than marketplaces like Bybit and X2Y2 who recently announced they’re throwing in the towel, blaming strategic pivots and security compromises. But underlying all this is the brutal reality: the NFT market isn’t what it used to be. According to DappRadar, a staggering 63% decrease in trading volumes since December 2024. But are these closures the exception or the rule – a sign of something more troubling?

I think that the competitive downward spiral of zero royalties is a risky gambit. Never forget it reminds me of the early days of music streaming. At the time, artists were feeling the pain as platforms preferred the high-volume, low-effort paradigm. Or are we destined to continue making the same mistakes? NFTs were supposed to democratize the creator economy. They wanted to provide them direct control over their work and a fairer slice of the economic pie. But if the model starts to go optional or even worse goes away entirely, what motivation is there for creators to continue producing?

Creators Losing Out?

Picture this—imagine that you’re a digital artist who has spent countless hours, heart and soul, creating an imaginative collection. You open it, betting everything on your dream to make a living doing what you love. Royalties are your safety net, your passive income stream that enables you to continue creating. Next, picture the scenario where those royalty payments get chopped in half, forcing you to pinch pennies just to survive. So it’s not just about the money, but about the principle. Because it’s really about valuing creative work and making sure the people who make it are compensated.

This isn't just some abstract economic argument. That does not make its impact any less tangible, particularly for creatives in the Global South such as South Asia, where jobs and economic opportunities are limited. I've seen firsthand the passion and talent coming from these communities, and the potential for NFTs to transform their lives. Yet that potential is being subverted by an accelerating race to the bottom on short creator fees. I’m trying to help fill this knowledge gap across the region, because we know that change is possible.

A Race To The Bottom?

What was Solsniper's stance on royalties? They helped create this race to the bottom! Now, I don’t have all the specifics about their exact model. If they offered lower fees or optional royalties to attract users, they may have inadvertently contributed to their own demise. Here's the harsh truth: a marketplace that doesn't support its creators isn't sustainable. It’s the same as a farmer deciding to eat all of the seeds instead of planting any. So yes, you may be obtaining a short-term benefit, but in fact you are killing your future crop production.

We need to shift the narrative. We need to understand that royalties are more than a check-the-box cost. They constitute a bold, commendable investment in the future of the NFT ecosystem. They’re the lifeblood that pours energy into all of the creative work that flows out.

To get NFTs on track, the crypto space could use a big helping of financial literacy. Creators need to understand the implications of different royalty structures, and collectors need to recognize the importance of supporting creators. It isn’t solely focused on profit, but rather creating a more prosperous and inclusive environment that serves all constituencies. We ought to be doing everything in our power to support artists and creators so that they are able to continue producing high-quality NFTs.

  • Educate yourself: Understand the economics of NFT royalties and how they impact creators.
  • Support marketplaces that enforce royalties: Choose platforms that prioritize creator sustainability.
  • Engage with creators: Let them know you value their work and support their right to fair compensation.

Though unfortunate, Solsniper’s closure was a wake-up call. We must not allow the quest for easy short-term profits to kill the big long-term potential of the NFT market. Let’s commit to supporting these type of creators, valuing their work, and creating an NFT ecosystem that is innovative and sustainable. The future of NFTs depends on it.

Solsniper's closure should serve as a wake-up call. We can't let the pursuit of short-term gains undermine the long-term health of the NFT market. Let's choose to support creators, value their work, and build an NFT ecosystem that is both innovative and sustainable. The future of NFTs depends on it.