Greed killed NFT royalties. The marketplaces that dropped them could be next

The issue of royalties in the NFT (Non-Fungible Token) art world and how they have been gradually disappearing from NFT marketplaces due to greed and competition. It highlights the initial promise of royalties in perpetuity for artists and creators who sold their work as NFTs, but points out that these royalties were never enforceable at the smart contract level and were always dependent on marketplace policies.

The author acknowledges that while some marketplaces initially supported creator royalties, most introduced optional or zero royalties in late 2022, primarily to protect their own marketplace fees. This sparked debates within the NFT community, with some creators advocating for the preservation of royalties, while others argued against them.

The author contends that royalties are an essential part of the NFT ecosystem, contributing to a delicate balance of value exchange. They argue that many Web3 companies were initially funded by minting NFTs and receiving royalties, which played a significant role in the industry's growth and attracted venture capital funding. For many creators, royalties are not just about brand building but also serve practical purposes like covering expenses and investments.

The article acknowledges the challenges associated with relying solely on royalties, especially during bear markets, and suggests that royalties should not apply universally to all NFTs or projects. However, the author firmly believes that royalties should be protected and that creators should have control over how their work is handled and distributed.

The author predicts that if marketplaces continue to remove royalty support, the NFT industry will adapt by creating purpose-built marketplaces that honor the intentions of creators. They foresee different platforms emerging for various NFT categories like gaming, fashion, fine art, and PFPs, each with innovative ways to incentivize creator royalties.

In conclusion, the article argues for the importance of preserving creator royalties in the NFT space and suggests that marketplaces that disregard this may lose relevance as the industry evolves. It emphasizes the need for a balance between creator rights and marketplace policies as the NFT ecosystem continues to develop.

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