In a bold move, the popular Solana NFT brand is now offering royalty-free access to its latest collection of products. The NFT collection DeGods has announced that the move is its “next experiment”. It is the latest to implement a 0% royalty policy.
The collection considers this the best business decision and it effectively exempts itself from any future legal action relating to artist royalty.
Non-fungible tokens (also known as NFTs) are cryptographically distinct tokens that can be linked to digital or physical content, memberships, proof of ownership, and other tokens.
Before NFTs, royalty payments to artists were based on a percentage of secondary market purchases. These follow-on sales are difficult to track, which is a problem NFTs can solve.
Recent moves by artists and NFT markets have indicated a desire for a change from this model. CryptoPunks, a top Ethereum NFT collection, has a 0% royalty structure. Other prominent creators give away all commercial rights.
DeGods posted the news on Sunday to the collection’s twitter account.
DeGods tweeted Sunday, “We believe that royalty is an amazing use case for NFTs.” “We will continue supporting creators who want to enforce royalties.”
According to CoinGecko data, the DUST utility token trades at $1.27. This is a decrease of 4.7% from DeGod’s announcement.
DeGods states that the revised 0% royalty stance will be applied to the t00bs/y00ts NFT collection.
“If royalties are removed… I think that the space will be more open to redefining “rug” meaning,” tweeted Frank, the pseudonymous creator of DeGods. Frank was responding to allegations that DeGods was either a “rug pull” scam or a “rug pull.” “For 5 months people labeled us a dead project & a rug.”
Solana NFT marketplace Solanart announced in August that it would “re-introduce” custom fees to the marketplace for buyers or sellers. It tweeted, “This is your chance to choose what’s fair.”
Solanart made note of DeGods’ decision to charge 0% today and defended the collection against claims it was heading to zero.
“We heard that DeGods will return to ZERO?” They tweeted, “Well sell me everything you want for 33.33 SOL and then fuck off & use 0% fees),
Dylan Shub, founder of Crown Capital DAO, challenged DeGods’ announcement on Twitter.
He tweeted “Considering that you made a big deal about the royalty debate and how you will enforce royalties or deny services,” “I would really like to know more about your decision.”
@hyxtcrypto wrote that “this decision is not helpful to the space.” While short-term teams may have some money, long-term royalties provide the incentive for teams to stay active and motivated as well as to be able to grow the company. Royalties are what have enabled DeGods to get where they are today.