The Chopping Block: Two on Two Debate: NFT Royalty Throwdown! - Ep. 409
Oct 19, 2022
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In this intriguing debate, Laura Shin, an author and crypto podcaster, goes head-to-head with Zhuoxun Yin, cofounder of the NFT marketplace Magic Eden, and Li Jin, cofounder of Variant Fund, known for their expertise in the creator economy. They tackle NFT royalties, with Laura arguing against zero royalties as a threat to creators, while Haseeb claims they aren't sustainable. Discussions also cover the future of the NFT market, the impact of optional royalties on creators, and innovative solutions for aligning interests between creators and collectors.
Welcome to The Chopping Block! Host Haseeb Qureshi partnered with Zhuoxun Yin, cofounder of Magic Eden, to debate Unchained host Laura Shin and Li Jin, cofounder at Variant Fund, on the topic of NFT Royalties.
Show highlights:
What NFT royalties are
Why Laura believes zero NFT royalties is a bad business decision prioritizing short-term needs over long-term ones and that it will turn creators off from the industry
How charging royalties is not sustainable, according to Haseeb
Why royalties are the best mechanism to align incentives between creators and holders, according to Li
The technical limitations of NFT royalties on a general-purpose blockchain like Ethereum or Solana
How to align incentives between NFT creators and holders
Why the prices of NFTs would go up if royalties are not enforced
Whether the NFT market will change in the future
Whether it is possible to create a standard that enforces royalties in a smart contract
The creators’ reaction to Magic Eden moving to optional royalties
The possibility of a bifurcation of the NFT market