Monax Labs Introduces Aspen Membership Platform to Address NFT Royalty Fees
Monax Labs, a studio specializing in legal solutions for NFTs, has developed a suite of products called Aspen to help creators enforce royalty payments. Aspen offers project creators tools to manage royalties, minting, subscriptions, and utility access. The platform is now available to the public, compatible with Ethereum NFTs, and Ethereum scaling networks like Polygon and Palm.
While it is technically difficult to enforce on-chain royalty payments, Monax aims to give creators control over granting perks and utility access based on whether secondary market buyers have paid royalty fees. Royalties were once a promising aspect of NFTs, allowing creators to earn ongoing remuneration. However, many marketplaces, including OpenSea, have stopped enforcing royalties, leading to a “race to the bottom.”
Aspen’s Approach: Leveraging Royalties for NFT Utility
Aspen treats royalties as an eligibility requirement for accessing an NFT’s utility, similar to a membership program. It enables creators to track payments and restrict access to NFT holders who haven’t paid royalties. However, it also allows NFT holders to pay later to regain access. Monax Labs compares Aspen to a Spotify or Netflix subscription model, emphasizing the responsibility on artists to provide value in return. The platform generates revenue by charging a commission on creators’ earnings.
Success Story: Consortium Key and Aspen’s Impact
During Aspen’s soft launch, Monax Labs collaborated with Consortium Key, a platform using Ethereum NFTs to enhance crypto trading efficiency. Consortium Key set its creator royalty fee at 7.5% of each secondary sale price. Before implementing Aspen, the fading enforcement of NFT royalties had significantly reduced Consortium Key’s revenue. However, within the first month of using Aspen, the platform achieved its initial revenue goal and doubled its subscriptions. Currently, 90% of Consortium Key’s holders have paid their set creator royalties.
Hot Take: Empowering Creators for a Thriving Web3 Ecosystem
While Aspen prioritizes utility over art, it encourages artists to consider ongoing benefits they can provide to NFT holders. These incentives can encourage buyers to hold onto their NFTs or attract potential buyers on the secondary market. Christina Giannakou, Chief Creative Officer at Monax Labs, believes that creators are the innovators driving the Web3 ecosystem. Ensuring they receive fair compensation for their innovation is crucial for the ecosystem’s sustainability.
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