Animoca co-founder Yat Siu: Giving up NFT royalties will “kill” Web3

On February 27th, Yat Siu, co-founder of Animoca Brands, said that creator royalties provided NFT projects with a continuous source of income that exceeded their initial sales (usually 5% to 10% when the tokens were resold). However, in order to seize market share, many companies are being led astray at the expense of creators.

Interpretation of this information:

In the world of Non-Fungible Tokens (NFTs), creator royalties represent an opportunity for project creators to earn a continuous stream of income. Although the initial sales typically yield a 5% to 10% commission for the creators, royalties provide them with a valuable source of income that outlasts the initial sale of the NFTs. This is especially important in a market where NFTs can be resold multiple times, providing creators with a source of income beyond the initial sale.

However, according to Yat Siu, co-founder of Animoca Brands, many companies are taking advantage of creators in their rush to seize market share. These companies are slashing royalties in order to boost sales, which ultimately harms creators and their ability to earn a steady income from their work. As a result, creators are forced to either accept a lower income or seek out different platforms that value their work and provide them with fair compensation.

This is a concerning trend, as creators are the backbone of the NFT market. Without them, there would be no unique and valuable digital assets to sell. By undervaluing creators, companies are essentially sabotaging themselves in the long run, as creators will ultimately move on to other platforms that respect their contributions.

In order to build a sustainable and thriving NFT market, it is essential that companies value and respect their creators. This means providing fair compensation and ensuring that royalties are sufficient to provide creators with a source of income that outlasts the initial sale of their NFTs. By doing so, they will not only attract top talent but also ensure that creators are incentivized to continue contributing to the market in the long term.