SNEAK PEEK
- 27% of all the creator royalties are distributed among only 10 NFT users.
- The royalty rates in the Open Sea jumped from an average of 3% of sales to 6%.
- The creator of Bored Ape Yacht Club, Yuga Labs earned the most royalties.
Galaxy Digital of Mike Novogratz found that the Ethereum NFT creators have paid $1.8 billion in Royalties. It has been reported that Sal Qadir and Gabe Parker, the Galaxy Digital.
Digital researchers found out that the royalty rates on the OpenSea have increased from 3% to 6%. The royalties are concentrated just among the 10 entities that took over about 27% of the NFT royalties. The economy is more centralized around the 482 collectors who got 80% of total market royalties.
The other famous creators on this particular list are Proof which involves Proof Collectives and Moonbirds, Chiru Birds, and the teams of The Sandbox and Vee Friends and Doodles.
Unique blockchains tokens of NFT are sold on launchpad and a third-party website. The Bored Ape Yacht Club is a startup that has earned $147 million alone from royalties. Metaverse land mint resulted in $561 million of sales in just 24 hours.
Data from Dune Analytics found that OpenSea makes up 80% of the marketplace volume.
The Galaxy highlighted that Nike is the top earner among legacy brands.
NFT royalties cannot be enforced on-chain without the sacrifice of decentralization principles and the values of self custody which are important to crypto proponents.
The royalties have been a source of income for the creators for hiring moderators, creating video games, etc. Recently there have been a lot of debates and questions surrounding NFT royalties. But abandoning it may take away the source of passive income from creators.
