The Open Metaverse Alliance for Web3 Forms Working Group to Standardize NFT Creator Royalties
A consortium of major Web3 companies, known as OMA3 (the Open Metaverse Alliance for Web3), has established a working group to address the issue of creator royalties on non-fungible token (NFT) marketplaces. The group aims to develop universal standards and ensure the preservation of creator royalties in the NFT ecosystem. Members of the working group include Magic Eden, Yuga Labs, and Animoca Brands, among others. Their primary focus will be to protect creator royalties by creating standardized practices across all NFT marketplaces.
Endangered Fees: The Removal of Creator Royalties
Creator royalties are fees paid to creators for secondary sales of NFTs, separate from platform earnings. However, some marketplaces have started removing these fees due to market conditions. OpenSea, for example, announced the retirement of the Operator Filter tool that enforced creator royalties for new collections. While existing collections will still have royalties enforced until 2024, other marketplaces followed suit in eliminating this feature.
Decentralized, Community-run Open Metaverse
OMA3 operates as a decentralized autonomous organization (DAO) and includes various Web3 metaverse platform creators. The NFT Working Group within OMA3 aims to enhance the functionality, usability, and security of NFTs while also developing solutions for standardizing and protecting creator royalties. Additionally, the group seeks to establish best practices for minting, purchasing, and using NFTs and reduce fraud in the NFT space. OMA3 envisions a unified metaverse ecosystem where digital assets are permissionless, interoperable, and controlled by users rather than platforms.
Hot Take: Protecting Creator Royalties in the Evolving NFT Landscape
The formation of the working group by OMA3 demonstrates a commitment to preserving creator royalties in the NFT market. By establishing universal standards and advocating for their enforcement, the group aims to ensure fair compensation for creators even as market conditions change. This initiative not only supports the principle of fairness but also promotes interoperability and incentivizes content sharing within the metaverse. As the NFT landscape evolves, it is crucial to protect the rights and financial interests of creators, ultimately fostering a sustainable and thriving ecosystem.
By
By
By