DeGods has done away with NFT royalties, and they predict that all marketplaces will eventually switch to a 0% model

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Last Updated on October 11, 2022 by Bitfinsider

Popular Solana NFT project DeGods has shifted to a 0% royalty model, which indicates that the project will no longer earn royalties on the sales of its NFTs.

DeGods has stated that despite the fact that it continues to believe that royalties are a “incredible use case” for NFTs and that it will support creators who want to find solutions to enforce them, it has determined that this is the best decision for its company at this time.

According to an announcement made by the company on Twitter, the t00bs and y00ts spinoff collections will also transition to a model in which there is no royalty.

The digital art industry is currently engaged in an ongoing discussion regarding the topic of NFT royalties. The ability for an artist to continue earning after the initial sale is one of the primary advantages that non-physical works of art have over physical works of art. This argument is made by those who believe that non-physical works of art are a necessary source of revenue for creators, particularly for smaller collections. Others contend that royalties are inconsistent with the concept of genuine ownership and that owners shouldn’t be required to make additional financial contributions.

The man who founded DeGods and goes by the name Frank has been quoted in the past as saying that royalties represent “the best alignment of incentives between founders and holders. The group also discussed the possibility of removing some utility from non-fungible tokens that are not traded on approved marketplaces.

Frank cited data showing the growing popularity of 0% royalty marketplaces as a major factor in the company’s decision to transition to a new strategy now that it has been made.

“There are no good solutions that are really available for enforcing royalties, and 0% markets are literally growing like weeds in terms of how many there are, pure user growth, and volume growth that has been filtered for wash trading. Following the announcement, he commented in a Twitter thread that “when you look at the data, it’s just kind of hard to believe in my mind that most of these [other] marketplaces will not go to 0% royalties.”

New marketplaces and competitors have taken a more flexible approach, in contrast to established ones like OpenSea and Magic Eden, which have maintained their unwavering commitment to the payment of royalties. Users are now able to purchase non-fungible tokens (NFTs) without having to pay royalties thanks to the proliferation of new platforms over the past year, such as SudoSwapAMM and YAWWW.

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