New data from research by eBit Labs and LiveArt marketplace reveals that the previous estimates of creator royalty losses, which were around $35 million, may be much higher.
The Non-Fungible Token (NFT) space has become a proven way to help users take their first steps into the Web3 space. This is especially true when it comes to artists and creators who use Web3 tools to promote their work. However, new data from eBit Labs and LiveArt Market reveal that the loss of royalty creators over the past year in the NFT space may be higher than expected.
According to the data, after the launch of the Blur market in October 2022, two of the main NFT collections – Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) – have a royalty’s deficit of about $20 million on their own. .
New data from BAYC and MAYC show that the initial estimate of $35 million in royalties may be too low. Creator’s rule has been a big issue in the NFT space. After the limited creator’s reign was suspended and received strong backlash from the community, the OpenSea marketplace said it would apply the creator’s license to all listed collections. In November 2022, the founders of BAYC proposed a new standard for NFT creator royalties, which will make NFT transfers between wallets free.
In September 2022, MagicEden, another top NFT exchange, approved its own NFT royalty enforcement tool. The tool gives creators the option to report NFTs or destroy the image if the listing or trade violates royalties.
Nevertheless, Boris Pevzner, the founder and CEO of LiveArt, said that despite the Web3 ecosystem boasting that it is a “creator’s space”, the new data shows that the truth has not happened and the promise. Pevzner went on to say that if the NFT market war prevents artists who want to join the industry, “the space will lose its creative spirit and become something like a market.”
The marketing war that Pevzner refers to primarily refers to Blur’s marketing efforts in that context, which is focused on the OpenSea market.
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