{"id":1390,"date":"2022-12-23T01:35:35","date_gmt":"2022-12-23T01:35:35","guid":{"rendered":"https:\/\/solanacrypto.news\/2022\/12\/23\/artist-royalties-are-among-most-compelling-features-of-crypto-zora-co-founder\/"},"modified":"2022-12-23T01:35:35","modified_gmt":"2022-12-23T01:35:35","slug":"artist-royalties-are-among-most-compelling-features-of-crypto-zora-co-founder","status":"publish","type":"post","link":"https:\/\/solanacrypto.news\/2022\/12\/23\/artist-royalties-are-among-most-compelling-features-of-crypto-zora-co-founder\/","title":{"rendered":"Artist Royalties Are Among \u2018Most Compelling Features of Crypto\u2019: Zora Co-Founder"},"content":{"rendered":"<div style=\"background-color:transparent;background-size:20% 100%;background-repeat:repeat-x;background-image:linear-gradient(to right, rgba(0, 0, 0, 0.04) 1px, transparent 1px);background-position:0%;border-right:1px solid rgba(0, 0, 0, 0.04);position:relative;overflow:visible;font-size:1.2em;line-height:1.58;text-align:left\">\n<p><iframe title=\"Spotify Embed: Ep. 27: Zora Looks Beyond NFTs to DAO Creation\" style=\"border-radius:12px\" width=\"100%\" height=\"152\" frameborder=\"0\" allowfullscreen=\"\" allow=\"autoplay; clipboard-write; encrypted-media; fullscreen; picture-in-picture\" loading=\"lazy\" src=\"https:\/\/open.spotify.com\/embed\/episode\/3cy1cf1oGVjghBzGrLpIHo?si=78df13517a8e4cd3&amp;utm_source=oembed\"><\/iframe><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">Royalties in the digital art market have become a hot-button topic since several NFT marketplaces, including <\/span><a target=\"_blank\" href=\"https:\/\/decrypt.co\/113021\/nft-marketplace-looksrare-zero-royalties\" class=\"sc-adb616fe-0 ePvUAp\" rel=\"noopener\"><span style=\"font-weight:400\">LooksRare<\/span><\/a><span style=\"font-weight:400\"> and <\/span><a target=\"_blank\" href=\"https:\/\/decrypt.co\/112110\/magic-eden-flip-flops-on-solana-nft-royalties-making-them-optional\" class=\"sc-adb616fe-0 ePvUAp\" rel=\"noopener\"><span style=\"font-weight:400\">Magic Eden<\/span><\/a><span style=\"font-weight:400\">, made paying royalties to artists optional. <\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">If you ask Jacob Horne, co-founder of the NFT and DAO platform Zora, things are headed in the wrong direction.<\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">&#8220;Royalties were one of the most compelling features of crypto to artists coming into the space,&#8221; Horne said on the new episode of <\/span><i><span style=\"font-weight:400\">Decrypt<\/span><\/i><span style=\"font-weight:400\">&#8216;s <a target=\"_blank\" href=\"https:\/\/decrypt.co\/collections\/gm-from-decrypt\" class=\"sc-adb616fe-0 ePvUAp\" rel=\"noopener\">gm podcast<\/a><\/span><span style=\"font-weight:400\">. &#8220;Because that&#8217;s been such a long-standing problem in the traditional art world or music world or any creative art form.&#8221;<\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">Horne pointed out most NFT marketplaces are likely heading to a zero-royalty policy in 2023, a move that, while pleasing many buyers, could harm digital artists\u2019 ability to make a living with their work.<\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\">NFTs or <a target=\"_blank\" href=\"https:\/\/decrypt.co\/resources\/non-fungible-tokens-nfts-explained-guide-learn-blockchain\" class=\"sc-adb616fe-0 ePvUAp\" rel=\"noopener\"><span style=\"font-weight:400\">non-fungible tokens<\/span><\/a> <span style=\"font-weight:400\">prove digital ownership on blockchain and provide a tamperproof record of digital asset transactions. NFTs are most commonly attached to digital art, but can be linked to other digital media like movies, music, TV shows, or real-world assets.<\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">Creator royalties are fees associated with the sale of NFTs, typically between 5% and 10% of the sale price, paid by the seller to the original creators of a given NFT project.<\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">&#8220;The fact that the early NFT wave touted royalties is such a strong feature,&#8221; Horne said. &#8220;And it did work for some time, but has led us to this moment right now where the actual functionality of those royalties is being challenged in practice. And we&#8217;re having to rethink, what does artist ownership look like in this context?&#8221;<\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">In August 2022, NFT Marketplace <\/span><a target=\"_blank\" href=\"https:\/\/decrypt.co\/108922\/forget-about-defi-summer-nft-autumn-is-arriving\" class=\"sc-adb616fe-0 ePvUAp\" rel=\"noopener\"><span style=\"font-weight:400\">Sudoswap<\/span><\/a><span style=\"font-weight:400\"> changed to a zero-royalty model, and X2Y2 instituted &#8220;flexible royalties.&#8221; A growing list of marketplaces followed by either eliminating creator royalties or making them optional.<\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">In October, NFT marketplace <\/span><a target=\"_blank\" href=\"https:\/\/decrypt.co\/113021\/nft-marketplace-looksrare-zero-royalties\" class=\"sc-adb616fe-0 ePvUAp\" rel=\"noopener\"><span style=\"font-weight:400\">LooksRare<\/span><\/a><span style=\"font-weight:400\"> announced it would no longer enforce royalties and instead offer artists a share of protocol fees. Popular NFT project DeGods also said, in October, it would move to its next &#8220;experiment,&#8221; and instituted a 0% royalty policy.<\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">According to Horne, the space has to rethink what artist ownership looks like. &#8220;Basically, what happened is a new number of marketplaces came onto the market and allowed collectors and traders to intentionally avoid royalties,&#8221; he said. &#8220;And then when you see royalties ranging from five to twenty percent, that has a huge impact on how speculative traders relate to these things, because they can say, &#8216;Five to twenty percent on a trade? That&#8217;s massive.'&#8221;<\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">In October, Magic Eden, the most popular marketplace for Solana NFTs, <\/span><a target=\"_blank\" href=\"https:\/\/decrypt.co\/112110\/magic-eden-flip-flops-on-solana-nft-royalties-making-them-optional\" class=\"sc-adb616fe-0 ePvUAp\" rel=\"noopener\"><span style=\"font-weight:400\">announced<\/span><\/a><span style=\"font-weight:400\"> it would no longer strictly honor creator-set royalties on NFTs sold through its platform.<\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">&#8220;After some difficult reflection and discussions with many creators, we&#8217;ve decided to move to optional royalties,&#8221; the platform tweeted. Magic Eden also said it would waive its platform fees during a promotional period in an apparent bid to win back traders.<\/span><\/p>\n<div class=\"relative w-full\">\n<blockquote class=\"twitter-tweet mx-auto\">\n<p lang=\"en\" dir=\"ltr\">\ud83e\uddf5After some difficult reflection and discussions with many creators, we\u2019ve decided to move to optional royalties on <a target=\"_blank\" href=\"https:\/\/twitter.com\/MagicEden?ref_src=twsrc%5Etfw\" data-wpel-link=\"internal\" rel=\"noopener\">@MagicEden<\/a>. <\/p>\n<p>Effective later today, we will also begin running a promotion to waive our platform fees.<\/p>\n<p>\u2014 Magic Eden \ud83e\ude84 (@MagicEden) <a target=\"_blank\" href=\"https:\/\/twitter.com\/MagicEden\/status\/1581101016686399491?ref_src=twsrc%5Etfw\" data-wpel-link=\"internal\" rel=\"noopener\">October 15, 2022<\/a><\/p>\n<\/blockquote>\n<\/div>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">After several weeks of backlash, OpenSea and <\/span><a target=\"_blank\" href=\"https:\/\/decrypt.co\/116215\/magic-eden-solana-nft-tool-enforce-creator-royalties\" class=\"sc-adb616fe-0 ePvUAp\" rel=\"noopener\"><span style=\"font-weight:400\">Magic Eden<\/span><\/a><span style=\"font-weight:400\"> announced they would integrate royalty enforcement tools.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">In November, OpenSea <\/span><a target=\"_blank\" href=\"https:\/\/decrypt.co\/113698\/opensea-breaks-silence-on-nft-royalties-but-creators-dont-like-what-they-hear\" class=\"sc-adb616fe-0 ePvUAp\" rel=\"noopener\"><span style=\"font-weight:400\">announced<\/span><\/a><span style=\"font-weight:400\"> a new royalty enforcement system that provides code for Ethereum NFT creators to insert into their newly-launched NFTs. These smart contracts point to a blocklist that blocks those NFTs from being traded on any zero-royalties or royalties-optional marketplaces.<\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">By December, Magic Eden <\/span><a target=\"_blank\" href=\"https:\/\/decrypt.co\/116215\/magic-eden-solana-nft-tool-enforce-creator-royalties\" class=\"sc-adb616fe-0 ePvUAp\" rel=\"noopener\"><span style=\"font-weight:400\">launched<\/span><\/a><span style=\"font-weight:400\"> the Open Creator Protocol, which it says can enforce creator royalties on Solana NFTs that use the tool. <\/span><span style=\"font-weight:400\">Similar to OpenSea&#8217;s, the new protocol allows NFT creators to block marketplaces that won&#8217;t honor royalty fees on eligible assets.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">&#8220;I think the moment we&#8217;re in now is, how can we start to think of new royalty models that don&#8217;t rely on secondary trading, but actually start to allow artists to retain ownership of the collection themselves up front,&#8221; Horne said,<\/span> <span style=\"font-weight:400\">going on to suggest that artists should hold back a percentage of the supply for themselves as a possible solution.<\/span><\/p>\n<p class=\"font-meta-serif-pro font-normal text-lg sm:text-xl sm:leading-9 tracking-px text-body\"><span style=\"font-weight:400\">&#8220;I&#8217;m very sympathetic to the artist side because it was one of the largest selling points, and now that&#8217;s being challenged.&#8221;<\/span><\/p>\n<div class=\"my-4 border-b border-decryptGridline\">\n<p><span class=\"border-t-4 border-l-4 w-4 h-4 sm:border-t-[6px] sm:border-l-[6px] sm:w-6 sm:h-6 border-decryptPurple dark:border-decryptNeon absolute top-4 left-4 sm:top-6 sm:left-6\"\/><span class=\"border-t-4 border-l-4 w-4 h-4 sm:border-t-[6px] sm:border-l-[6px] sm:w-6 sm:h-6 border-decryptPurple dark:border-decryptNeon absolute rotate-180 bottom-4 right-4 sm:bottom-6 sm:right-6\"\/><\/p>\n<h3 class=\"font-ak-bold text-xl sm:text-3xl mb-6 md:text-center\">Stay on top of crypto news, get daily updates in your inbox.<\/h3>\n<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Royalties in the digital art market have become a hot-button topic since several NFT marketplaces, including LooksRare and Magic Eden, made paying royalties to artists optional. If you ask Jacob Horne, co-founder of the NFT and DAO platform Zora, things are headed in the wrong direction. &#8220;Royalties were one of the most compelling features of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1391,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts\/1390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/comments?post=1390"}],"version-history":[{"count":0,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts\/1390\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/media\/1391"}],"wp:attachment":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/media?parent=1390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/categories?post=1390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/tags?post=1390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}