You know what are NFT royalties?
Simply put, they are the tips you give your waiter each time they deliver your food.
Only in the case of NFTs, the tips go directly to the chef who actually made the food.
And because its crypto and on the blockchain, its a trackable and coded into the smart contracts.
In other words, each time the NFT sells or changes hands from one person to another, the Chef (or Artist) gets a small percentage of the sale.
Well, how many %?
Some NFTs have 2.5% royalties, other have 10% but most are around 5%.
Then there was the whole debacle in 2022 about whether should there be royalties or not.
Platforms like OpenSea and Rarible were debating to remove royalties or not.
Artists, of course, were puzzled and angry.
Well, we aren’t here to debate that today.
We are here to note just how much the top NFT collections made from royalties in 2022.
In totality, Yuga Labs made nearly $110M from royalties.
Their creations include Otherdeeds, BAYC and MAYC.
Otherdeeds alone made $49.9M.
Remember how crazy the launch day sales were?
People were furiously trying to get their hands on and reselling Otherdeeds.
Yuga do own Cryptopunks, but because there are no royalties embedded in their smart contracts, they do not make any money from the secondary sales at all.
Moonbirds made $27M, which is solid given the community-building efforts and all the hype that went into it.
Even Goblintown made $7.4M, which is respectable for a startup in the nascent NFT space.
After all the hype and the fiasco they generated.
The 3 hours of grunting on Twitter spaces.
The sassy, rude and in-your-face copywriting and grotesque graphics.
It all worked out pretty well in the end.
Communities were built around them and the marketing was strong enough to constantly bring more people in.
More hype meant more people, more users and more speculations meant more transactions and so more royalties.
Good for the team and boohoo for the users?
Hey, if the data proves anything, it proves royalties can be a huge source of income.
Doodles, BAYC, Azuki and VeeFriend all did very well.
Even Nike and Adidas are getting in on it too.
Nike owns CloneX & RTFKT collections.
Both are top 10 in terms of royalties earned.
Multi-billion dollar enterprises are shifting the joysticks of their motherships and headed into NFT land.
It shows promise.
It shows that while most NFTs may die out, some of the top ones will remain and their legacy will form.
I said it before, any startup that is discerning enough and willing to put in the thoughtfulness, creativity, dedication and effort to build up the hype, marketing and community behind an NFT brand, will succeed in the mid to long term.
Should NFTs have royalties?
#startups #business #startupx #growth #success #socialmedia #culture #entrepreneurship #strategy #eth #btc #crypto #sifu #sifutoken #quadrigacx #NFT #profits #meme #tvl #defi