At a time when marketplaces are using creator royalties as a bargaining chip to pull in users, Animoca Brands and its CEO, Yat Siu, are taking a stance on the issue. The company has introduced three NFT licenses that aim to protect creator royalties. These licenses “require the payment of creator royalties as a condition for receiving licenses to that NFT’s art and utility.”
Midway through last year, Siu made his feelings on the issue clear in a long Twitter thread. He showed support for creator royalties and emphasized their importance, noting that they were a critical part of the Web3 ethos and not paying them was “free-riding.”
1/ Royalties for NFT creators are essential to a decentralized & democratic ecosystem, ensuring fair distribution of value to contributors/creators, which in turn supports value creation across all #NFT commons. Royalties are a critical part of the #web3 #ethos https://t.co/J64WiAqqqn
— Yat Siu (@ysiu) August 23, 2022
Animoca Brands would later announce they were working on setting up a framework that aimed to protect creator royalties to the best of their abilities. After months of anxious waiting, it seems the company has finalized the framework. It comes in the shape of three NFT licenses. These include one for personal use only, one for permitted commercial use that allows for commercial use up to a predetermined annual monetary limit, and the third one is for unlimited use. The latter license allows for unlimited personal use with no monetary limit on commercial use.
Access the 3 licenses >> Here
Animoca Brands Believes Creator Royalties are Crucial to the NFT Ecosystem
According to Animoca Brands, creator royalties are key to a “sustainable and efficient decentralized and democratic ecosystem. They support long-term success, incentivize creators, enable ownership and commercial rights, and benefit the entire commons.”
Whenever an NFT buyer opts to forego paying the creator their dues, they should remember that royalties serve as a social convention to defend the ethos of Web3. Thus, not paying them is against the best interests of everyone involved.
As Siu puts it, “No royalties is retrograde. (Traditional) game assets continue to depreciate in value because game studios can only make money by creating new assets for inflationary game economies. This results in economies without any actual value to players. Why go backwards?“
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*All investment/financial opinions expressed by NFT Plazas are from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to fully research any product prior to making any kind of investment.
Basil is an avid fan of blockchain technology and all its innovations, and he is passionate about sharing this narrative with his audience. He has spent over five years in the crypto space, specializing in research and creating Web3 content for various media outlets around the globe.
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