Cryptocurrency NewsMajor NFT Creators Challenge Royalty Reductions

Major NFT Creators Challenge Royalty Reductions

Key NFT creators, including Yuga Labs and Bored Ape Yacht Club, rethink their presence on leading platforms Blur and OpenSea, in response to recent reductions in royalties.

Prominent entities in the NFT domain, such as Yuga Labs Inc., behind the Bored Ape Yacht Club and CryptoPunks, and the Pudgy Penguins series, are reassessing their ties with major marketplaces like Blur and OpenSea. Some are pausing new listings or thinking about such moves, as highlighted by Bloomberg articles.

In the current year, Blur and OpenSea have notably decreased the royalty amounts artists earn from sales in the secondary market, in a bid to increase transaction numbers amidst a waning NFT market. Data from analytics firm Nansen indicates that September’s royalties were a mere $2.4 million, a stark drop from the $269 million peak in January.
The NFT market experiences notable shifts
Yuga Labs has chosen to cease the trade of its latest NFT set, Mara, on Blur and OpenSea, stating that only platforms offering fair royalties will be allowed to feature their tokens. The firm has also announced workforce reductions due to the challenging market scenario.
Initially, Blur gained traction with its appealing low-fee model, quickly surpassing OpenSea, prompting the latter to reconsider its fee strategies. Presently, Blur’s core royalty fee is set at 0.5%, while OpenSea has shifted to customizable creator charges. Together, these platforms account for about 70% of all NFT trades.
Leading 5 NFT platforms based on weekly trade volume

With diminishing royalties, several initiatives are venturing into alternative sectors, like video games or tangible collectibles. For instance, Pudgy Penguins has branched out into merchandise. This year, merchandise revenue reached $7 million, in sharp contrast to just $300,000 from NFT royalties.
Currently, the primary series from Yuga Labs and Pudgy Penguins represent a remarkable two-thirds of the NFT trades this year. It’s evident that their potential departure from key platforms could notably influence the broader market.


Join us

- Advertisement -