Let's be blunt. We’re all aware that this crypto space is the wild west. Even in the mightiest of lawless lands, there still exist unwritten codes, tapestries of civility woven in places you’d least expect. Recently, however, those threads are being cut, and the shattering sound of trust that has been built in that space is reverberating throughout the NFT world. The culprit? Mergers and Acquisitions. Those M&A deals once represented the crypto market’s maturation. Now, they’re more commonly used as a weapon against the creators that grew this ecosystem.

M&A: A Silent Royalty Heist?

Think of NFTs like digital paintings. You, the artist, sell a painting for $1 million, but you receive a small percentage — 10 percent, say — every time that painting is resold. That's the royalty. It’s how you stay productive, how you thrive, how you persevere. Now, picture that a major corporation purchases the art gallery that your painting is now hanging in. All of a sudden they loudly announce that the resale royalty should really be this much lower, that it’s infringing on their profit margins. They gut it, or perhaps even remove it altogether. You're left with nothing.

Well, that’s exactly what is going on in the NFT space right now. The platforms that were supposedly going to democratize production and empower creators with new tools are being consumed by corporate titans. These are companies that put profit over the people. In doing so, they’re employing tactics that amount to plain old royalty stripping.

The dashboard tracking M&A activity might show impressive deal sizes and valuations, it's missing a crucial piece of the puzzle: the human cost. It’s tempting to focus on the hype, the calculations, the funding rounds, the “synergy trends.” What of the artists, musicians and developers who probably just wanted to get into these assets that they used to make their games, laboratories, exploratoriums, discotheques, experiences etc. Are their voices being heard? Are their livelihoods being protected?

Forced Migration, Diminished Control, Zero Royalties

Think about it from a creator's perspective. You create your vibrant community on that platform, wagering that the platform will keep its word about continuing to provide royalties. Then, BAM! The platform is acquired. Only to be informed you need to move your NFTs elsewhere — to another marketplace that offers shittier terms. Or better yet, the purchasing company just chooses to stop paying royalties or pays less in royalties. What choice do you have? Your audience is already moving there, your brand’s reputation is already there. You’re pretty much coerced into agreeing to the newly-revised terms, or else you lose it all.

This isn't just about money. It's about control. As a creator, you don’t want someone to take your work and use it in ways you don’t approve of or redistribute it. When a major corporation buys a platform, none of that is in your control anymore. They control all of the content, they control all of the access, and you are a mere pawn in their revenue generation strategy game.

Consider this: traditional finance has always been scrutinized for its lack of transparency and centralization. Crypto offered an alternative route, a decentralized, more empowered route. M&A activity is through the roof. This increase exposes a dangerous reality — that a few big players are amassing power.

Smart Contracts And Creator Collectives: A Solution?

So, what can we do? Are our favorite creators just fated to be taken advantage of by these corporate giants? Absolutely not. We need to fight back.

And it’s it time to expect a lot more from the platforms that we use. Accountability—both through the courts and in the marketplace It’s well past time to hold these corporations accountable for their actions. It’s high time to defend the artists that are truly the lifeblood of the NFT community. Because without them, there is no ecosystem. There’s nothing behind it, only one more empty vault of broken promises and crumbled dreams.

  • Smart Contract Protections: This is crucial. We need to develop smart contracts that automatically enforce royalty payments, regardless of platform changes. This would create a truly decentralized system where creators are always compensated for their work.
  • Creator Collectives: Strength in numbers. By forming creator collectives, artists can negotiate better royalty terms with platforms and advocate for stronger legal protections. Think of it as a union for the digital age.
  • Consumer Awareness: We, as consumers, have a responsibility to support creators and platforms that respect their rights. We need to be more aware of the royalty structures of different platforms and choose to support those that are fair and transparent.

It's time to demand more from the platforms we use. It's time to hold these corporations accountable for their actions. It's time to protect the creators who are the heart and soul of the NFT ecosystem. Because without them, there is no ecosystem. There's just another empty shell of broken promises and shattered dreams.

And frankly, we deserve better. They deserve better.