Nifty Analysis
As NiftyNoon noted last week days before this announcement (Miami Magic for October 12, 2022), Magic Eden has reversed its stance on enforcing creator royalties. Although the Solana marketplace’s market share dominance has fallen from nearly 98% to below 50%, it is still the largest Solana NFT marketplace by far. The implications of Magic Eden’s elimination of mandatory creator royalties are large, particularly as Ethereum NFT trends closely track that of Solana NFT trends. It is now more likely than ever that we see a world where all major NFT marketplaces do not enforce mandatory creator royalties. Thus, teams and artists will have to look for new sustainable revenue streams. Although some projects such as QQL from Tyler Hobbs have blocked royalty-optional exchanges, it will be difficult to justify doing so if OpenSea eventually follows Magic Eden and brings this new royalty landscape to Ethereum.
In the long run, it’s likely that royalties as the NFT market knows them today will be phased out. Although the current trend seems to be a push toward the full elimination of royalties altogether, many powerful voices have pushed for moderate alternatives. Beeple’s suggestion of a shift from a seller fee to a buyer premium is sensible. However, it likely will not circumvent the core issue driving people to avoid royalties to begin with: a suck on liquidity. As the bear market rages on and people make less (or perhaps even lose) money on NFTs, they will always be looking for opportunities to get more out of their sales or get cheaper buys. For this reason, NiftyNoon believes that applying royalties to profits on sales (rather than total sale price) is a very reasonable solution. However, the market will ultimately decide where royalties go in the future.
Project News
Citing pressure from new market entrants, Magic Eden moves its Solana marketplace to optional creator royalties and temporarily waives platform fees:
Azuki releases collector profiles and teases PROOF OF SKATE, a Hong Kong technology installation:
VeeFriends teases VeeCon 2023 but does not release the time and location of the event:
Community News
Beeple shares his thoughts on how royalties can survive into the future by changing them from a seller’s fee to a buyer’s premium:
Rare Pepe collector suffers huge NFT hack possibly due to vulnerability in vanity Ethereum address generator:
Quick Stats:
OpenSea USD Daily Volume: $8.25M (▼ 16.52%)
OpenSea ETH Daily Volume: 6,397 ETH (▼ 16.50%)
BTC: $19,593.60 (▲ 2.39%)
ETH: $1,331.17 (▲ 3.66%)
Solana: $31.02 (▲ 3.69%)
NFT Daily Winners:
Bored Ape Yacht Club: 76.00 ETH (▲ 5.98%)
Azuki: 9.91 ETH (▲ 2.16%)
Mutant Ape Yacht Club: 14.09 ETH (▲ 0.64%)
CryptoPunks: 65.00 ETH (► 0.00%)
VeeFriends: 5.50 ETH (► 0.00%)
NFT Daily Losers:
Proof Collective: 39.50 ETH (▼ 5.95%)
Clone X: 7.99 ETH (▼ 5.33%)
DigiDaigaku: 13.00 ETH (▼ 2.99%)
Moonbirds: 9.50 ETH (▼ 2.56%)
Doodles: 7.46 ETH (▼ 0.80%)
Chromie Squiggles: 12.25 ETH (▼ 0.67%)
Notes:
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