BAYC to Introduce a New Model For NFT Creator Royalties

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The current NFT creator royalties discussion continues to elicit differing opinions from members of the crypto community. Bored Yacht Club (BAYC) founders have entered the debate, proposing a balanced royalty model that empowers both creators and consumers.

Quick Take:

  • The BAYC founders want an NFT creator royalty model that keeps NFT transfers between wallets free. As per them, this will encourage creators to stay in the NFT ecosystem.
  • The creators of Yuga Labs defended NFT creator royalties and criticized marketplaces that do reject them.
  • They suggested an allowlist model that is community-run and gives creators control over which marketplaces can handle secondary sales of their NFTs.

The BAYC Takes Part in the NFT Creator Fund Argument

The co-founders of BAYC stated that they want an NFT creator model that keeps NFT transfers across crypto wallets cheap and encourages producers to stay inside the NFL ecosystem.

The statement was made in response to OpenSea’s announcement on November 6 that it will follow the lead of many other NFT markets in enforcing royalties. OpenSea intends to launch a new NFT enforcement function that will allow authors to select their royalties.

Moreover, Yuga Labs and 10KTF have developed an allowlist model allowing artists to only accept secondary exchanges via royalty-paying markets. 10KTF is a digital “tailor” that designs apparel for NFT avatars. If a marketplace’s smart contract is on the list, then a transaction will go through. If not, then it won’t. Standard wallet-to-wallet transfers would be unaffected, they wrote

BAYC Co-Founder Wylie Aronow expressed tweeted about his take on the matter. In his blog, he expressed interest in joining the rest of the platforms in protecting NFT creator royalties. According to him, eliminating them would be “not great.” 

”For as much as NFTs have been about users truly owning their digital assets, they’ve also been about empowering creators.”

BAYC co-founder Wylie Aronow

Yuga Labs Proposes A New NFT Royalty Model

The BAYC creators have suggested a novel model for NFT royalties that incorporates “allowlist” capabilities into an NFT collecting smart contract. Further, the new functionality will enable free wallet-to-wallet transactions on royalty-compliant marketplaces.

The creators observed that the new approach, like past ventures, had trade-offs, such as list upkeep and a higher entry barrier for new digital markets. However, the senior executives stressed that this ‘allowlist’ is still in its early stages.

Yuga Labs’ idea for an “allowlist” is different from what OpenSea suggested over the weekend, which was to make a “blocklist” for markets that don’t pay creators in full. Many creators in the NFT space saw OpenSea’s action as anti-competitive and monopolistic.

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