SNEAK PEEK
- The Open Metaverse Alliance for Web3 (OMA3) forms a working group focused on NFT creator royalties, involving key industry figures.
- Creator royalties, essential for rewarding NFT artists, face inconsistency due to marketplace strategies eliminating these fees.
- These changes pose a threat to the envisioned metaverse, where genuine digital ownership and inter-platform operability are key.
OMA3, a consortium known as the Open Metaverse Alliance for Web3, has assembled a working group to address and enhance the current state of NFT creator royalties. This group comprises major players from the blockchain, NFT, and metaverse sectors.
Creator royalties—fees ranging from 2.5% to 10%—are added to secondary NFT sales. These fees are directed towards the original creators. However, the changing market dynamics have threatened the consistent application of these royalties. A few NFT marketplaces began removing these fees in an effort to attract more users. Consequently, the successful implementation of this tactic caused significant shifts in platform dominance within the NFT marketplace.
Additionally, OMA3 participants view this change as a risk, not only to the NFT space but to the ultimate goal of metaverse development. They believe in a metaverse where users have true digital ownership, enabling virtual items to move effortlessly between platforms.
Robby Yung, the CEO of Animoca Brands and co-founder of OMA3, emphasized the significance of creator royalties. He believes that without the promise of future royalty benefits, creators might be hesitant to share their content. His vision is for a more democratic, transparent, and fair online ecosystem than what currently exists.
However, Yung acknowledges a challenge. Many current NFT purchasers seem to be more focused on immediate financial gains rather than considering the broader implications for the digital community.
The OMA3 working group, featuring Animoca, Yuga Labs, Magic Eden, and others like Decentraland, aims to establish protective measures for these royalties. They hope to introduce universal standards for NFT marketplaces, ensuring these fees are upheld.
Mike Seavers, the CTO of Yuga Labs, expressed Yuga’s commitment to a fair and interoperable Web3 environment. They’re dedicated to working alongside OMA3 in setting the standards for success.
Moreover, some renowned NFT brands, in response to platforms like OpenSea halting creator royalty enforcement, have considered limiting their association. Yuga Labs, for example, considered ending its NFT brand compatibility with OpenSea after it ceased enforcement of royalties.
To conclude, the digital landscape is evolving, and the need to protect creator royalties is more pressing than ever. OMA3’s initiative, backed by industry heavyweights, aims to restore balance and ensure fairness within the NFT marketplace.
