Here's why the X2Y2 team's solution to set 0% royalties might be of crucial importance for the progress of "serious" non-fungible tokens (NFTs).
Major NFT marketplace removes royalties
Yesterday, Aug. 27, 2022, many Web3 and NFT enthusiasts tweeted about the controversial decision of the X2Y2 team to amend creator royalties.
Hot take on @the_x2y2's royalty changes - it's GREAT for the NFT space.— Snowflake ❄️ (@jameskwho) August 26, 2022
Slow-rug projects are altcoins w/ pictures and don't deserve royalties
Real NFT projects will be forced to become real, profitable businesses. Raising VC $ is one way to add pressure to this.
With the new update, creators will not receive royalties when their artworks are sold. On the one hand, this measure will dramatically reduce the income of NFT artists and most likely make them think about leaving X2Y2.
However, some speakers are sure that removing royalties will make artists seek VC funding instead of retail-focused income models. This, in turn, will make tokenized art "real, profitable business."
Also, an anonymous Azuki developer Cygaar proposed a tool designed to allow NFT creators to whitelist marketplaces where the buyers of their tokens can offer them.
X2Y2 team responds: "0% royalties is not the way forward"
With this tool, teams can prevent their NFTs from being listed on zero-royalty platforms.
Amid criticism, the X2Y2 team released a statement to confirm that its royalties policy is still in the very making. The final decision will be up to the token holders, the X2Y2 representatives shared.
While debate is raging pls note this is far from finished product & updates are already in the works:— X2Y2 (@the_x2y2) August 27, 2022
1. We will enforce royalty for 1/1 art & similar
2. Implement 'holders only' voting system allowing holders to decide, as a group, whether to enable/disable optional royalties
They added that removing royalties is not the way to the perfect economic model for an NFT marketplace:
0% royalties is most definitely NOT the way forward! We agree! We will be working w/ market participants from all sides to ensure it doesn't become the norm as it is up to us, collectively as an industry, to set the right standards & pave the way for the future of the NFT space
X2Y2 is the largest new-gen marketplace for NFTs among all services launched after the 2021 NFT craze.