Protecting Creator Royalties: Yuga Labs Takes a Stand

ChainPlay

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one year ago

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Backtracking on Creator Compensation: Marketplaces Face Backlash

In an effort to emphasize their commitment to safeguarding creator royalties, Yuga Labs, a prominent NFT powerhouse, has taken a bold step by preventing users from trading its latest NFT collection on various top marketplaces. As a result, Yuga Labs has effectively disabled the trading of its Otherside Mara tokens on platforms including OpenSea, Blur, LooksRare, and Sudoswap V1.

Over the past year, prominent NFT marketplaces such as OpenSea have come under scrutiny for reneging on their promises to ensure fair compensation for creators when their NFTs are resold in secondary markets. This reversal has sparked significant backlash within the creator community, with many perceiving it as a direct threat to their hard-earned work and income.

Yuga Labs Takes a Stand: Blocking Non-Royalty-Supporting Platforms

Yuga Labs, a key player in the NFT space, has thrown its weight behind the cause of preserving creator royalties. The company strongly condemns the actions of marketplaces that prioritize the pursuit of lower prices over the protection of creators' interests. In light of this stance, Yuga Labs has enacted a decisive move, blocking platforms that do not uphold enforced royalties from trading its latest Otherside Mara NFT collection. This strategic decision effectively restricts the trade of these NFTs to select marketplaces, including X2Y2, Rarible, and Sudoswap V2.

The issue of creator royalties has remained a contentious topic for over a year. During this period, marketplaces like OpenSea have flip-flopped on their positions multiple times. The heart of the problem lies in marketplaces trying to outcompete each other by circumventing royalty payments. However, this practice of avoiding payments to creators is inherently unsustainable in the long run.

Creators Seek Supportive Platforms

Ultimately, the creators themselves will migrate away from marketplaces that fail to support their interests. They are likely to gravitate toward platforms that genuinely prioritize their well-being and financial stability. This shift in preference bodes well for platforms like Rarible and X2Y2, while posing a challenge to their less empathetic competitors who prioritize their own profits over creators' rights. As the NFT landscape continues to evolve, supporting creators and their royalties will be a pivotal factor in determining which platforms flourish and which fade into obscurity.