- ImmutableX has disclosed plans to outgrow its mandatory royalties model throughout the Web3 space.
- The move represents an initial step in the direction of creating industry-wide standards based on obligatory royalty payouts.
- Immutable is planning to form a group with major industry leaders for the creation of the enforceable royalties structure as a standard.
Immutable is bringing an Ethereum-based product to facilitate the payment of royalties to NFT creators.
According to a release, the product will function like a community-controlled whitelist and blacklist for smart contracts that respect royalties. By using these lists, creators can control the smart contracts that can receive as well as transfer non-fungible tokens from their collection. This will make sure that users can trade exclusively via royalty-respecting contracts.
The solution is being deployed on ImmutableX. IMX token owners will control the lists.
Robbie Ferguson, co-founder of Immutable, has shown support towards NFT royalties despite popular marketplaces like LooksRare making them an option. Now, buyers can choose not to pay royalties on most of the known markets, except OpenSea.
Last month, Ferguson shared that Immutable guarantees royalties and it was imposed at a protocol-wide level.
This is enforced at a protocol-wide level on any marketplace.— Robbie Ferguson 🅧 – Hiring! (@0xferg) October 17, 2022
This means marketplaces aren't forced to compete by offering optional-royalties, but can have guaranteed economics (and protect the economics of creators / games).
Co-founder and CTO of Immutable, Alex Connolly, shared that they envision an ecosystem that provides creators a choice on both their royalty structure and level of enforceability. Talking about users, they can vote in terms of projects they find worthy. Soft-enforced royalties kind of punish users who show support to projects. Also, it decreases the confidence of game studios and creators in terms of their revenue options.
It’s up to creators to decide how badly they strive to enforce royalty payments. The new tool by Immutable will take away the burden of enforcement from markets.
Systems proposed earlier like the MetaShield product by Magic Eden have identified non-fungible tokens that have avoided royalties; however, the decision to take any action stays with a third party.
Recently, GameStop announced adding Web3 gaming NFTs to its marketplace through Immutable X.