This article comes fromDecrypt, original author: Kate Irwin
Odaily Translator |
This article comes from, original author: Kate IrwinOdaily Translator |
Mike Novogratz's investment institutions
A new research report released by Galaxy Digital shows that
, NFT creators on the Ethereum chain received a total of $1.8 billion in royalties from secondary sales on marketplaces such as OpenSea.
The researchers also found that royalty revenue was concentrated in 10 entities, data suggesting that the NFT economy may be more centralized than some thought.
In the report, Galaxy Digital researchers Sal Qadir and Gabe Parker also found that the average royalty rate for NFT creators on OpenSea has doubled over the past year, jumping from 3% to 6% of sales.
The top 10 entities received nearly $500 million in royalties, accounting for 27% of Ethereum NFT royalty revenue. According to Flipside Crypto data, 482 NFT series received a total of 80% of market royalties.
Yuga Labs, the publisher of Bored Ape Yacht Club, topped the list with the most NFT royalties. The $4 billion startup has expanded its focus to developing blockchain games, earning over $147 million in royalties alone (including BAYC, MAYC, Otherside). That's not surprising considering Yuga Labs' Otherside metaverse land Otherdeed mint achieved $561 million in gross sales in just 24 hours earlier this year.
When mint NFT items are marketed through OpenSea, creators can choose the percentage of royalties they wish to receive from secondary sales. In total, OpenSea Storefront creators earned more than $76.7 million in royalties from these sales, placing them third on Galaxy Digital's list.
Other well-known NFT creators on the list include Chiru Labs (Azuki NFT series), PROOF Collective (PROOF Pass, Moonbirds), the team behind The Sandbox, Doodles, Gary Vaynerchuk's VeeFriends.
Galaxy Digital also released a ranking list focusing only on traditional brands, with Nike (NIKE) the company with the highest NFT royalty income, exceeding $91.6 million. The list includes various non-Nike branded NFT products from RTFKT, a digital studio that Nike acquired in 2021. Other brands on the list include Dolce & Gabbana, Gucci and Adidas.
secondary title
royalty disputeHistorically, royalties have been hailed as an important part of the NFT ecosystem, providing creators with a steady stream of income to continue developing various initiatives on their project's "roadmap", such as creating video games, hosting NFT member parties , or recruit more community moderators.Qadir and Parker referred to royalties as "the core value proposition of NFTs," but also acknowledged that royalties cannot currently be enforced on-chain without sacrificing some of the principles of decentralization and self-custody that many crypto proponents cite. Cherished.Enforcement of on-chain royalties could trigger a new blockchain trilemma, says Ethereum co-founder Vitalik ButerinThe scalable trilemma discussed in the paper
Not all that different, rival platform Algorand claims its
Solving the Blockchain Trilemma
. It is currently up to the centralized NFT marketplace to choose to enforce the royalties collected by creators, not on-chain.NFT royalties have become a hot topic this month. Solana NFT creator Frank decided on Oct. 9 to completely cancel royalties on the DeGods and y00ts NFT series, calling the move an "experiment."After the rise of the Solana marketplace, some marketplaces either did not charge creator royalties, or gave traders the option to pay royalties or not. NFT sellers can often avoid paying 5% to 10% of secondary sales without paying royalties to creators.
After losing significant market share to rival platforms, Solana marketplace Magic Eden announced last week that it would follow suit,Enable optional royalty feature. Magic Eden tweeted, “We understand that this move has a significant impact on the ecosystem,” and expressed hope to “see a new standard for protecting royalties” develop.Some people criticized Magic Eden's decision on Twitter, calling it a "worst decision so far
". Metaplex, the Solana ecological NFT protocol, recently said it is developing a new standard that can enforce royalties on the chain.
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