Yuga Labs Supports Royalty-Enforcing Marketplaces

Yuga Labs is the brains behind some of the most popular NFT collections, including BAYC and CryptoPunks. They have shown their support for royalty fees. The team announced in an X message that it would pull its affiliated NFT collection from marketplaces that did not enforce the model. The move is a watershed for NFT artists affected by a lack of royalty enforcement among NFT markets.

NFT royalties are fees that are paid to the creators for every secondary sale. The fee, which is usually a percentage, is determined based on the price of the digital artwork. The topic of creators’ royalties has been controversial in recent years. Popular NFT marketplaces have taken varying positions on the issue, ranging from compulsory, optional and zero royalty enforcement. LooksRare is one example. You can also use a zero royalty policy since November 2022.

Yuga Labs’ Latest MoveThe accompanied by the “much anticipated”Magic Eden launches a NFT marketplace based on Ethereum. Remember that the duo platforms will merge in November 2023. Declared Plans to roll out an NFT marketplace compatible with digital collectibles on the Ethereum network while upholding creators’ royalties. The BAYC creator called the new royalty-focused platforms as “the first major marketplace to partner with creators.”

Yuga Labs has added the following to its announcement:

“In sync with the marketplace launch, [starting February 27th] we will be sunsetting our support for marketplaces who don’t support royalties for ALL creators. This means that our collections with a royalty filter will only be traded on marketplaces that respect creator royalties for any and all creators at the protocol level.”

The Among NFT collections affected by the announcement are Otherside’s Koda, Loot, Catalyst, 10KTF’s Gucci Grail, Combat Crates, HV-MTL, Sewer Passes, and more.

With Yuga Labs’ latest shift towards fostering a creator-focused community within the Ethereum ecosystem, the firm paves the way for platforms upholding the zero royalty policy to rethink their choices. Time will tell whether more NFT platforms follow a similar route.