Over the last few years, the rise of Blur has led to the proliferation of NFT marketplaces that no longer enforce royalties but leave the decision up to traders. In 2024, however, creators look set to reshape the landscape.
In a significant move on Monday, February 27, Yuga Labs announced that it will introduce a filter to the smart contracts of some of its NFT collections to restrict trading of these NFTs to only pro-royalties marketplaces, a move strategically timed with the launch of its backed Magic Eden marketplace.
In what could be the markings of an emerging trend, De Labs, the creators of the popular DeGods and y00ts NFT collections, has followed Yuga Labs’ lead.
The Beginning of a Movement to Shape the NFT Landscape?
On Tuesday, February 27, De Labs CTO “Chills” disclosed that the firm had updated the y00ts code only to permit transactions on marketplaces enforcing royalties like the Yuga Labs-backed Magic Eden platform.
“Listings on Blur & OpenSea will remain until people delist but are not buyable anymore,” Chills wrote.
The De Labs move gives credence to speculation that the Yuga Labs move could influence other creators to attach filters to their NFTs to protect royalties. Widespread adoption of these measures could again see platforms like OpenSea and LooksRare make another 180° turn to enforce royalties.
Meanwhile, De Labs takes things further, unveiling a plan to use the move to bolster its creator talent pool.
A Grand Strategy?
Announcing the recent move to enforce royalties on the official y00ts X account, the De Labs team notes that received royalties would be directed toward two purposes: raking in new talent and extending the reach of present creators.
In line with this goal, the team would be purchasing and giving out free y00ts to talented members of the community nominated by holders. At the same time, they would be giving X badges to existing creators.
“If we grow our creators & builders -> we grow the brand,” the team wrote.
Magic Eden data at the time of writing shows that y00ts have a floor price of 0.73 ETH, up 1% in the past 24 hours.
On the Flipside
De Labs has not applied the same filter to the DeGods NFT collection. Whether other creators will join the emerging trend remains to be seen.
Why This Matters
The De Labs move indicates that Yuga Labs may have kicked off a trend that could see other NFT creators support only royalties enforcing marketplaces, potentially reshaping the NFT landscape.
Source : DailyCoin by Okoya David / Feb 29, 2024