Now, picture that same world in which every time someone plays your favorite song on their home speakers or during their workout, the artist is compensated. Not merely a transaction, but rather an equitable, continuous remuneration for all that effort that went into their creation providing happiness to everyone else. That’s the revolution of NFT royalties – and it’s under siege. Why? Short-sighted greed usually wins out over long-term vision, particularly in the Wild West of Web3.

Are Royalties Just Another Tax?

As opponents of royalties claim, these are nothing more than new taxes, innovation-killing boondoggles that inject new bureaucratic processes that disrupt market efficiency. They say it’s a barrier to the free flow of digital assets that is stunting innovation. Consider this: Artists are the source of value in the NFT space. Without them, there is no market.

Think of it like this: you wouldn't expect a construction company to build a skyscraper and then never pay the architects who designed it again. Royalties are the architect’s perpetual share, the reminder that their creative contribution remains a source of value long after the building was created. Removing them is like robbing the architects after the building’s completed.

This isn’t only about cash dollars and cents, it’s about respect and sustainability. It’s not just about curriculum, though, it’s about creating an ecosystem where artists can flourish, innovate, and keep blessing our digital universe. If we kill that ecosystem at its source, what’s there? A barren landscape of soulless speculation.

Democratization or Exploitation?

NFTs are memes, changing the art world. They cut out traditional gatekeepers and democratize exposure, allowing artists to reach a diverse international audience. Sure, platforms like OpenSea, Rarible, and Foundation provide access to an unprecedented global audience. But access alone isn't enough. Without royalties, this democratization turns into exploitation.

Here's the unexpected connection: Consider the music industry before streaming. Artists were forced to the whims of record labels, selling their rights for a song. Streaming was supposed to provide artists with a more equitable outcome too. For most, it is not yet a viable living, as they receive only a fraction of a cent per stream. Are we really trapped in a never-ending loop with NFTs? What begins as a pledge of liberation quickly becomes a tool for the ruling class to extract wealth from the dispossessed.

  • The Promise: Direct access to collectors, global reach, new revenue streams.
  • The Reality (Without Royalties): Increased competition, market saturation, race to the bottom, exploitation.

We need to ensure that the democratization of the art world doesn't simply replace one form of exploitation with another. Royalties are their secret weapon to stop that. Especially for artists from emerging markets – Asia-Pacific, Latin America, and Africa – who lack the resources and networks to navigate the established art world. These artists are the future – and with royalties, we have a chance to level the playing field.

The Great South Asian NFT Heist?

Now is the time to address the actual elephant in the room, which is the lucrative prospect of a Great South Asian NFT Heist. Now, picture that same genius young artist in Bangladesh, being able to express themselves through beautiful digital art that’s seen worldwide. This artist mints an NFT, sells it, and is overjoyed to see their work appreciated and traded. But without a right to royalties, they only earn money off of that first sale. Their work is not only in high demand, it’s appreciated value on the secondary market. All the while, they see others make out like bandits while getting paid nothing themselves. This is not only deeply inequitable — it’s digital colonialism, siphoning off untold value from emerging economies without equitable return.

This isn't far-fetched. In fact, it's happening now. The lack of royalty enforcement disproportionately impacts artists from underrepresented communities who rely on these ongoing payments to survive and create. Are we really trying to create a future where the digital art space further entrenches deep-seated inequities?

Here's where you come in. As collectors, investors, and active participants in the NFT space, you all have tremendous influence over its direction. Support platforms that enforce royalties. Champion artists who prioritize ethical practices. Demand transparency and fairness.

Don't let the promise of a decentralized, democratic art world turn into a digital gold rush where the rich get richer and the artists who create the value are left behind. The secret weapon artists have to fight climate change is in your hands. Use it wisely. Short-term profits are seductive, but we can’t allow ourselves to be blinded by them. Let’s not lose sight of the long-term impact of eroding the underpinnings of this thrilling new ecosystem.