Are we killing the golden goose? And we’ve all seen the recent headlines that shout about million-dollar NFT sales! As an example, CryptoPunk #9723 was recently sold for a jaw dropping 120 ETH, approximately IDR 6 billion. NFT Price Floor reinforces the fact that enthusiasm for digital assets is still strong. But behind the flashy numbers, a silent war is raging, a war that could determine the future of digital art and creator economies: the attack on NFT royalties.

Are We Devaluing Digital Art?

Let's be blunt. Advocating for royalty-free NFT marketplaces is a shortsighted race to the bottom. Ok, on paper, it sounds fantastic – reduced transaction costs, increased volume, everybody benefits, correct? Wrong. We're essentially telling artists, "Your future earnings? Optional. Your ongoing stake in your creation? Irrelevant."

Think about it. As an artist, you put every ounce of your being into a work. Then, after minting it as an NFT, you sit helplessly as that same work gets flipped and re-flipped, all that value created while none of it returns to you. I'd be angry. Wouldn't you? It's like a musician writing a hit song and then being told they don't deserve royalties every time it's played.

The entire argument comes down to “healthcare market efficiency” and “eliminating the middleman.” The truth is, royalties are much more than a whining vestigial tax. In short, they really make life beautiful as a creator. Their work ignites creativity and pushes us to think outside the box when developing the NFT space further. Without their input, we doom the most transformative uses of this tech and risk making the NFT market a soulless speculation game.

CryptoPunks: A Royalty Warning Sign?

The CryptoPunk sales data is interesting. Yup, someone really did spend a buttload on an 8-bit-looking character. But then, ask yourself, how much of that money actually returns to the original creators, Larva Labs (now Yuga Labs)? With the rise of royalty-optional marketplaces, the answer is likely: less and less.

This is not a case of calling for pity on Yuga Labs. They're doing alright. It's about the broader implications. If even absolute best-in-class projects like CryptoPunks are susceptible to being undercut on royalties, what chance do smaller, up-and-coming artists stand?

Now, imagine that you’re a digital artist from one of those underrepresented communities, just starting to find your feet and voice and platform through NFTs. You depend on those royalties to pay for your work, provide for your family, and reinvest in your art. And then, all of a sudden, the rug gets pulled out from under you because some platform on the internet determined that royalties were “inefficient.” Is that fair? Is that sustainable?

The Future Requires Fair Compensation

It’s not only about dollars and cents though, it’s respect and sustainability. We have to remember at the end of the day, creators are the heartbeat of the NFT space. Without them, there is no ecosystem.

This isn't about clinging to the past. We’re designing a future that guarantees creators equitable pay for their contributions. That future will encourage creativity and entrepreneurship and ensure the NFT marketplace is vibrant for years to come.

  • Educate collectors: Make them understand the importance of royalties and encourage them to support platforms that respect creator rights.
  • Innovate royalty structures: Explore more flexible and transparent royalty models that can adapt to the evolving needs of the market. Perhaps dynamic royalties based on price or holding period?
  • Support creator-owned platforms: Empower artists to take control of their own distribution and monetization.

So, please, let’s not go and eat the golden goose all for the sake of a few short-term profits. Join us in creating an NFT ecosystem centered on creativity, fairness, and sustainability. We need to be visionary and not short sighted. Otherwise, we will waste the thrilling promise that NFTs offer and make it just another temporary hype bubble. Oh—and as always, past performance does not guarantee future results. As always, conduct your own due diligence, and remember that trading crypto involves significant risk. And no, I’m not going to ask you to download some crypto-related apps. That's not the point.

Let's not kill the golden goose in the name of short-term profits. Let's build an NFT ecosystem that values creativity, fairness, and sustainability. We need to think long term, or we risk turning the exciting potential of NFTs into just another flash in the pan. And remember, past performance is not indicative of future results. Always do your own research, and be aware of the risks involved in crypto trading. (And no, I'm not going to tell you to download any specific crypto apps. That's not the point.)