4min chapter

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Building a Web3 Future with Atari X

From The Blockchain

CHAPTER

Zero Royalty Is the Only Source of Revenue for a Project

marketplaces are making it possible for people to avoid these royalties by giving a zero royalty option and this is taking away that money from not only the artist but also projects now if you're trading a lot of NFTs if you're day trading you might see this as a benefit because you're going to be paying a little bit less to other people. A lot of projects are built currently in a format where they rely on those royalties after their original mint this is the only source of revenue that a project has so taking that away immediately without any buffer zone or warning can be harmful, says Fame Lady Squad. We want to see projects having alternate sources of revenue where royalties isn't the only thing

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Speaker 3
marketplaces are making it possible for people to avoid these royalties by giving a zero royalty option and this is taking away that money from not only the artist but also projects now if you're trading a lot of NFTs if you're day trading you might see this as a benefit because you're going to be paying a little bit less to other people and making a little bit more money yourself up to five percent which can be substantial as i said in a sale of say a hundred thousand dollars but a lot of projects are built currently in a format where they rely on those royalties after their original mint this is the only source of revenue that a project has so taking that away immediately without any buffer zone or warning or any way that they can work around it can be harmful to projects that are relying on that money now is it necessarily good thing that they're relying on this as their only source of revenue i don't necessarily agree with that as i think projects should work towards having a strong enough utility that is generating revenue to keep the project alive you know we have bear markets we have we have these times where where the price of things or down volume is down and we don't want that to mean that the project dies because they're only source of revenue is gone right so we want to see projects having alternate sources of revenue where royalties isn't the only thing that they have as an option to sustain themselves but that being said you know all these marketplaces all these big marketplaces are switching over to the zero percent royalties you know there is ways that projects can get around this it would be difficult for projects that are already minted unless they have smart contracts that can be altered but new projects can actually blacklist certain addresses from transferring or trading the NFTs in the smart contract so you can make it so that the zero percent marketplaces are not able to sell or transfer your NFTs and therefore only the NFT marketplaces that have royalties are able to be used for your NFT you could even blacklist every marketplace and build your own marketplace and make it so that your royalties are 100 percent enforced because the only way around that would be you know like a person individually selling to another person by just sending the money and then hoping that the NFT gets sent which is not a safe way to do it I never recommend making sales or buying that way and most of the space avoids that in general so that's why these marketplaces are important and that's why they're used so you know I'm curious what do you guys think about these royalties do you think the zero percent royalty fed is going to grow do you think it's going to die do you think we're going to see more marketplaces pop up with other options for artists to keep their royalties we'd love to know more on your thoughts so please leave them below thank you for joining us and we'll see you next week
Speaker 1
thank you for joining us on From the Blockchain we hope you enjoyed the show if you have any questions about today's episode please send us a message so we can answer it if you want to learn more about Fame Lady Squad or how you can get involved with NFTs please visit our website or join our growing community on Discord we genuinely believe we couldn't do the things that we do without the support of our community and listeners like you so thank you so much we'll see you again soon

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