X

Karen from Columbus

Signed up at LTC Casino 41 minutes ago.

» Try LTC Casino too
Do not show again

Galaxy Digital released a report showing Ethereum NFTs creators earned a sum of $1.8 billion in royalties via marketplaces such as OpenSea in secondary sales.

Sal Qadir and Gabe Parker led the team of researchers at Galaxy Digital. They discovered the royalty rates at OpenSea for NFT creators have doubled on average over the last year. They now receive 6% of sales up from 3%. Crypto Lists explores more!

The Centralization of NFT Royalties: Exploring Galaxy Digital’s Report

The report also highlights that the NFT economy may perhaps be more centralized than how most people perceive it. Royalty distributions went mostly to ten entities. These entities received close to half a billion dollars in royalties. This represented 27% of Ethereum NFT royalties earnings. The report relying on Flipside Crypto data highlights that at least 482 NFT collections accumulatively earned 80% of all market royalties.

NFTs are associated with their blockchain tokens to represent ownership. The tokens are minted or sold on a third-party website developed by NFT creators. Alternatively, they are sold through a committed launchpad accessible in particular marketplaces. Once the mint is complete, the NFTs are resold in marketplaces such as OpenSea, LokksRare, Magic Eden, and others. OpenSea is the best-performing marketplace by trading volume.

Yuga Labs, the creator of Bored Ape Yacht Club, earns the most royalties with over $147 million in royalties alone. The $4 billion startup’s royalties earnings are not a big surprise as its Otherside metaverse land mint yielded $561 million in total sales within 24 hours earlier this year. The startup is also delving into blockchain games.

Rating: 9.4/10
Supply: 307,782,016 / 511,216,000
Release date: April 10, 2019

Description: Buy Solana and enter the world of NFTs with low costs and high speeds!

Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.


OpenSea NFT MarketPlace Facilitates NFT Royalties

There has been a surge in NFT marketplaces recently. However, OpenSea still holds the most significant share of NFT resales. Data from Data Analytics and the Galaxy report supports this as OpenSea represents over 80% of Ethereum NFT marketplace volume.

NFT creators that mint through OpenSea decide on the percentage of royalties from secondary sales. These creators have over $76.7 million in royalties earnings to date from these sales. There are other reputable NFT creators. These include Chiru Labs’ Azuki, Proof Moonbirds, The Sandbox team, Doodles Team, and Gary Vaynerchuk’s VeeFriends.

The Galaxy Digital report also referenced an independent set of data that emphasised legacy brands. The report reveals that Nike is the leading earner with $91.6 million. There are NFT offerings in the listing that are from RTFKT but not branded by Nike. Nike acquired RTFKT as a digital studio in 2021. Other brands included in the listing include Gucci, Adidas, and Dolce & Gabbana.

Role of Royalties in the NFT Ecosystem

Based on the recent past, royalties are critical in the NFT ecosystem. Creators have consistent earnings to support the development of various objectives in their projects’ roadmap. Some creators look to create a video game, have token-gated parties, and hire community moderators.

Qadir and Parker describe royalties as a core value proposition of NFT. However, they note that they are not enforceable on-chain without forgoing decentralization and self-custody principles. These principles are essential for crypto proposals. Its enforcement possibly triggers a blockchain trilemma. Therefore, centralized NFT marketplaces enforce the royalties. We’re sure that there will be further news to come as NFTs become a bigger and bigger part of the consumer market.

NFT Marketplaces’ Debate on Abandoning Royalties

In the past month, NFT royalties have caused much debate. On October 9th, pseudonymous Solana NFT creator Frank did away with royalties for DeGods and y00ts profile picture NFT collections. He termed it as an experiment after Solana marketplaces ignored creator royalties or allowed traders to determine if they would pay them. Avoiding creator royalty fees saves NFT sellers about 5% to 10% of the secondary sale.

Following these developments, Magic Eden announced that creator royalties are optional. The top Solana marketplace decided this after losing a significant market share to its competitors. It announced this move on Twitter, highlighting that it acknowledges the significant implications for the ecosystem. It also delivered a call for a new set of standards to protect royalties.

The reaction to Magic Eden’s recent development was marred by criticism. Several Twitter users responded by pointing out that it is the worst decision showcasing a desperate grasp for market share. Creators are still hopeful as the creator of Solana’s current NFT standard, Metaplax, indicated recently that it is advancing a new standard that can enforce royalties on-chain.

As the NFT royalties debate continues, regardless of the outcome, it is clear that terminating royalties forfeits a significant source of income for creators. You can learn more about the Solana coin here.

by Our Certified Author
Solana Coin Newsflash
    Sample Solana's speed on the new Juice Bet casino today!Sample Solana's speed on the new Juice Bet casino today!
    Wednesday, 19 Jun 2024 11:35 am
    Say hello to another fresh casino (see all) from the world of crypto iGaming. This time it's time for something that's fresh in more ways than one since it's the one and only Juice Bet (review) - a site that combines thousands of games with one heck of a sports betting section featuring loads of US sports sitting pretty alongside soccer and more. You can even wager on political events too. What stands out to us is the range of crypto deposit and withdrawal options that include meme coins like Shiba Inu, layer-2 powerhouses like Solana and all alongside the big names like Bitcoin and Tether, the two coins here that have the fastest withdrawal speed...
    Read the full newsflash


    Betsolino's new casino adds Dai, Tron & MifinityBetsolino's new casino adds Dai, Tron & Mifinity
    Friday, 14 Jun 2024 1:54 pm
    One of the newest crypto casinos from May 2024 is adding even more deposit methods. Now, you can get started on Betsolino (see review)a> even with Dai, USDT (Tron) or the payment processor MiFinity. All new players can enjoy up to 5000 USDT in welcome bonus and a super quick sign-up process. We suggest that you visit Betsolino today and find a genero...
    Read the full newsflash


    Solana regins supreme on Kingamo's royal casinoSolana regins supreme on Kingamo's royal casino
    Friday, 7 Jun 2024 9:00 am
    Want to be a royal hero? Perhaps you can on Kingamo (review) where you can claim a crown as the king of the crypto casino players. Fancy your chances? There are plenty of ways to prove it. Not only do you have standard slots to wager on, Kingamo Casino brings an array of attractive promos to its players. The fun starts with a 1000 USDT welcome bonus and you’ll find a choice of ongoing rewards, including up to 20% daily cashback. Cashback fit for a future king, if you ask me! And did we mention Solana deposits? You can use that awesome purple-themed coin right here. Visit the website now and take...
    Read the full newsflash


    Fresh Thursdays: try the brand new Crown Play with SOLFresh Thursdays: try the brand new Crown Play with SOL
    Thursday, 15 Feb 2024 10:25 am
    Act like a king on a new casino launched in January with a 500 USDT welcome bonus. That's right, why not check out our review of Crown Play (review), a site from the team over at Rabidi with almost 100 software developers and an amazing array of cryptos to deposit. One of the best things is USDT on Ethereum Tron, or Solana networks for maximum convenience and blazing speeds. When we deposited using USDT on Solana the funds arrived in mere minutes. Similarly, with SOL it was even faster! Amazing. Get your hands on some top bonuses and a top sportsbetting section by registering now on Crown Play...
    Read the full newsflash


    MetaWin adds Solana for casino depositsMetaWin adds Solana for casino deposits
    Friday, 2 Feb 2024 4:05 pm
    MetaWin (see review) confirms that Solana (SOL) is not accepted. They are giving away 400 SOL - worth over 40 000 USD - to 10 lucky winners. Sign-up now to grab a...
    Read the full newsflash

New Casino Reviews
New Crypto Casinos
Best Crypto Casinos
Recent Crypto Sites
Recent Crypto Coins
  • Shuffle logo
     Shuffle
    ETHEREUM-TOKEN
  • Maker logo
     Maker
    ETHEREUM-TOKEN
  • Mantle logo
     Mantle
    ETHEREUM-TOKEN
Keep up to date with
 

Our Newsletter

Sign up to our newsletter to get the
latest crypto news, new casinos,
bonus offers and other exciting
exclusives.
* indicates required
CryptoLists.com
Copyright © 2019-2022, by Crypto Lists Ltd (CryptoLists.com). Company name: Crypto Lists Limited. Address: 5 Upper Montagu Street, LONDON W1H 2AG, England.
Jump to top