The Open Metaverse Alliance Establishes Working Group to Standardize Creator Royalties on NFT Marketplaces
The Open Metaverse Alliance (OMA3) has formed a working group consisting of prominent blockchain, NFT, and metaverse companies to develop standards and ensure the survival of creator royalties on NFT marketplaces. Participants in the group include Yuga Labs, the creator of the popular NFT collection Bored Ape Yacht Club, and Magic Eden, a multi-chain NFT marketplace.
Threats to Creator Royalties
Creator royalties are additional fees added to secondary sales of NFTs that go directly to the creators. However, these royalties have come under threat as some upstart NFT marketplaces eliminated them to attract users from dominant platforms like OpenSea. OpenSea itself eventually stopped enforcing creator fees.
The Importance of Creator Royalties
The Open Metaverse Alliance sees this shift as a threat to not only the NFT ecosystem but also to the development of an interoperable online metaverse. Creator royalties are seen as integral to fairness, respecting authorship, and incentivizing content sharing in a future where digital ownership is redefined.
Building an Equitable Online Ecosystem
Robby Yung, CEO of Animoca Brands and co-founder of the Open Metaverse Alliance, has been working towards creating a more equitable and transparent online ecosystem. However, he acknowledges that many NFT buyers prioritize short-term financial gains over long-term well-being.
Working Group Objectives
The OMA’s working group aims to protect creator royalties by establishing universal standards for NFT marketplaces. Companies such as Decentraland, The Sandbox, Alien Worlds, and Upland will also participate in this effort.
Hot Take: Ensuring the Future of Creator Royalties in the NFT Ecosystem
The Open Metaverse Alliance’s working group on creator royalties is a crucial step towards standardizing and protecting the income of creators in the NFT market. By establishing universal standards, the group aims to ensure the long-term viability of creator royalties and foster an interoperable online metaverse. This initiative not only promotes fairness and authorship but also incentivizes content sharing and benefits creators in the future. With the participation of prominent companies in the crypto space, this collaborative effort has the potential to shape the future of NFT marketplaces and redefine digital ownership.
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