X

Michael from New York City

Signed up at Bitspins Casino 8 minutes ago.

» Try Bitspins 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: 9.33/10
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
    Solana is now integrated with Google's BigQuerySolana is now integrated with Google's BigQuery
    Tuesday, 31 Oct 2023 9:38 pm
    Google has made an important integration with Solana blockchain, making it simple to access historical Solana prices and transactions. Google Cloud and their BigQuery is now integrated with the Solana coin and blockchain. It was initially announced at Breakpoint in Lisbon 2022 and less than a year later, it's now fully integrated and can be used and found...
    Read the full newsflash


    WorldPay and VISA now work with Solana BlockchainWorldPay and VISA now work with Solana Blockchain
    Tuesday, 5 Sep 2023 8:12 pm
    The smart money seems to be finding their way into Solana (SOL). The private equity company GTCR acquired 55% stake in the payment processor WorldPay earlier this year, with Fidelity National Information Services (FIS) as the other major stakeholder. Today, Visa announced that they work with WorldPay and Nuvei to accept USDC stablecoin over the Solana network. Earlier, only USDC payments through the more expensive Ethereum Network was supported. This could be major positive news for Solana reaching mainstream consumers and investors, that are looking for a fast and affordable blockchain and native coin. Solana (SOL) was up over 4.6% following the news from VISA, while Bitcoin (BTC) is down 0.6% for the day and ETH is up a modest 0.2%. Is the next step an increasing amount of Solana casinos, following rather high gas fees for transfers...
    Read the full newsflash


    Solis Bet: a new Cardano casino with a juicy welcome bonus!Solis Bet: a new Cardano casino with a juicy welcome bonus!
    Thursday, 31 Aug 2023 11:46 am
    There are exciting new crypto casinos popping up all the time, but at Crypto Lists we like to think we've got a pretty discerning eye and only review the best ones. One that we published today is the awesome Solis Bet (review). One thing we really liked with Solis was that you can deposit with Cardano (ADA). So, in simple terms it's a Cardano casino, a flourishing niche and one that sits alongside others including Solana casinos. And, there are 2000 games for you to enjoy from developers like BGaming, which is really cool because new casinos often don't have any big names. If you sign up now, you can get a welcome bonus worth up to 1250 EUR. So, what are you waiting for? Try Solis Bet now and get your hands on some tip-top prizes and play some great...
    Read the full newsflash


    Highest Rated Solana casinos in August, 2023Highest Rated Solana casinos in August, 2023
    Friday, 25 Aug 2023 9:21 pm
    Don't care about anything but the best and fastest, or perhaps you like the newest? Well, CryptoCasino (facts) is a combination of both and they have super high rating from our independent reviewers. At this brand new crypto casino, you can deposit with Solana and take out money with SOL as well. Everything goes in crazy fast and during out tests it took less than 5 seconds for a deposit to arrive. Sign-up for CryptoCasino now and enjoy the best reward program in the industry, a fantastic selection of games and obviously full Solana support. Another of the latest reviews is for the global Betplay casino. They also take pride in immediate deposits and just as quick payouts. They have a lovely design and been around for almost 2 years and it's available for most countries around the world. Give BetPlay a try now! Few others can compete with their offering, design and speed of...
    Read the full newsflash


    CryptoCasino: a brand new casino with SOL deposit and playCryptoCasino: a brand new casino with SOL deposit and play
    Monday, 21 Aug 2023 10:47 am

    If you're keen to try a brand new crypto casino that comes with 15% cashback, a match deposit bonus, 50 free spins on registration, and more crypto deposit options than you can shake a stick at then let us introduce you to the one and only CryptoCasino (review). It's loyalty program is simply exquisite, with 30+ levels to climb, each one more bountiful than the last. And, with seven tiers to pass through, you can expect some truly marvelous rewards to come your way, including holidays paid for on the house. Kerching! It's also one of the very best Solana casinos, allowing you to both deposit and play with the popular coin. Not many casinos offer this, so it's yet another feature that separates CryptoCasino from the rest of the pack. Sound good? Thought so. Play CryptoCasino now and claim your 50 free spins before...
    Read the full newsflash


New Casino Reviews
New Crypto Casinos
Best Crypto Casinos
Recent Crypto Sites
Recent Crypto Coins
  • CorgiAI logo
     CorgiAI
    CRONOS-TOKEN
  • IPVERSE logo
     IPVERSE
    ETHEREUM-TOKEN
  • Book.io logo
     Book.io
    CARDANO-TOKEN
  • Smart logo
     Smart
    NATIVE-COIN
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