Non-fungible token (NFT) creators have been getting paid on secondary market sales of their creations, but new entrepreneurs entering the space are foregoing those payments in order to pass savings on to collectors.
Why it matters: A part of the NFT economy's public pitch has always been that they offer a better deal for artists. They offered a way for creators to benefit from secondary sales of their artwork, or so the argument went.
One problem: Well, assumptions about NFT royalty payments just aren't universally true.
Context: The NFT market is down but definitely not out. According to NonFungible.com, there was about $855 million in NFT sales in August — far below past highs, but more than enough to keep a bunch of startups going.
The intrigue: Still, a couple of newer, notable marketplaces just aren't honoring royalties, and collectors seem to like it.
Sudoswap has really increased its volume over the last month, but it is x2y2 that's dominating the market (though it has a token, so that could be a lot of wash trading).
What they're saying: "Artist Royalties are as fundamental as rain: They keep the creative cycle alive," the artist Hackatao (who has been making NFTs since long before they were cool) told Axios via Twitter.
What we're watching: Royalties might become less bespoke, more standardized, and something that becomes more consensus than enshrined law.
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Administraroot
