Michael Blau
@michaelblau
NFT royalties were never enforced onchain, even though everyone expected them to be. Onchain royalties on secondary sales have always been an important value proposition of NFTs, but they’ve been misunderstood for a while now. In a way, NFT royalties reached product-market fit before there ever was a “product.” Creators now have a few different solutions to choose from, but each come with tradeoffs that can be difficult to navigate. So how do NFT royalties work, and why have they been so challenging to implement? Here are some thoughts from @skominers, @darenmatsuoka, and myself on current designs, along with a few new ideas. Full post 👉 https://a16zcrypto.com/posts/article/how-nft-royalties-work/
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Michael Blau
@michaelblau
It’s difficult to distinguish between the NFT transfers that are sales that should pay a royalty and other types of transfers, like transferring between your own wallets or gifting an NFT, etc. The two most popular designs for enforcing NFT royalties, blocklists and allowlists, take different approaches to restricting NFT transfers, but they come with a tradeoff: The more strictly a creator prevents transfers, the less composable the NFT.
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Cryptoversal 📚🎩
@cryptoversal
Good stuff. I made an early version of “right of reclaim” a while back through the terms of a collection license agreement that required royalty payment to use the IP, but with no onchain enforcement mechanism.
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itai (building dynamic.xyz)
@itai
Great read!
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killjoy.eth 🎩
@killjoy
Thanks for sharing this! Great read. 205 $DEGEN
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Mark Hilgenberg
@hilgi
It has been such a disappointment how royalties have gone ignored. From what I remember Wax is able to enforce them.
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russian_acai 🌚✨🚽🐇
@acai
has to be said 1000$farther
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Montez
@montez
Did the team explore how ERC 6551 may impact this? I figured a benefit token bound accounts was having more programmability within the NFT itself through modules for licensing, royalties, etc. @storyprotocol biz is a bet on just that
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Future 🎩
@future
563 $degen
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