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/
9 replies
7 recasts
113 reactions
Sumaa
@sumaa
Something I’ve thought about - creators and marketplaces share similar incentives to enforce royalties, therefore you can create an off-chain blocklist maintained by the creator, and being on the blocklist forgoes all holder benefits (airdrops, events, etc.) Then for every non royalty paying action (I.e anything but trading) there is a 12hr delay until you can move that NFT again. This comes from the assumption that a NFT trader (party who wants to avoid royalties) needs fast + liquid NFTs and holders don’t. If a trader acts malicious (doesn’t follow the rules), the NFT goes on the blocklist and it’s value will trade significantly lower than non-tainted NFTs. If the rule was broken accidentally a user could sign a randomly generated message by the creator with both the wallets that underwent the transfer. Assuming if it was a non trading transfer, they likely have access to the other wallet or access to the person that owns the other wallet
0 reply
0 recast
0 reaction
