How Royalty-Embedded Blockchains Can Help NFT Artists Get Paid 💰💎🎨

According to Atlas Development executive Nadaine Tongco-Edades, on-chain enforcement is the most effective way to handle royalties in NFTs.

How Royalty-Embedded Blockchains Can Help NFT Artists Get Paid

Blockchain technology has revolutionized the world of digital assets, providing artists and creators with new opportunities to monetize their work. However, one of the most pressing issues faced by NFT creators in 2023 was the loss of royalties. Many creators missed out on millions of dollars that they could have earned for their NFT collections. But fear not! Enter royalty-embedded blockchains, the superheroes of the digital art world, here to save the day and ensure that creators receive the royalties they deserve.

A Two-Year Low for Royalties 😱⬇️

In July 2023, Ethereum-based NFTs experienced a two-year low in terms of royalties, according to data from blockchain analytics firm Nansen. This alarming trend left creators scratching their heads and wondering how they can protect their hard-earned royalties. Marketplaces experimented with optional royalty models, but it seemed like there had to be a better solution.

Enjin and the RARI Foundation to the Rescue 🦸‍♂️🦸‍♀️

In response to this crisis, some platforms took matters into their own hands by implementing built-in royalty enforcement tools within their blockchains. Enjin, a prominent NFT-focused blockchain platform, released a blockchain mainnet in June 2023 that embedded royalty enforcement within the code itself. This means that royalties are not just an afterthought; they are an integral part of the blockchain’s foundation.

But Enjin wasn’t alone in this quest to protect creators’ royalties. The RARI Foundation, the nonprofit arm of the Rarible ecosystem, also unveiled a testnet for an Ethereum-compatible chain with embedded royalties. The mainnet version of this blockchain was released on January 24. These initiatives demonstrate a commitment to creating a sustainable Web3 creator economy that rewards artists for their hard work.

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The Highest Level Guarantee for Creators ✅💪

Jana Bertram, the head of strategy at the RARI Foundation, emphasized the importance of embedding royalties within the blockchain itself. She believes that this approach provides the “highest level guarantee” that a creator’s royalties will be respected. Unlike app-level enforcement, where changes in the business direction can nullify royalties, node-level royalties are permanent and cannot be changed.

Bertram argues that this innovation will help build a sustainable Web3 creator economy by providing a consistent revenue stream for creators. Each time their NFTs are traded, artists will receive their fair share through royalties. After all, royalties are a vital tool for creators to make a living and thrive in the long run within the Web3 universe.

Sparking the NFT Renaissance 💥🎉

Nadaine Tongco-Edades, the vice president of finance at Atlas Development, echoes the sentiment that embedding royalties within blockchains could be the catalyst for a major NFT comeback. Tongco-Edades suggests that if royalties are proven to be a reliable revenue stream, new business models could emerge within the NFT space, sustaining various projects experimenting with this exciting technology.

She also points out that on-chain royalties are just one of the many functions that are best enforced at the protocol level. Chains that have NFT functions, especially royalties, hardwired into their protocols, offer the strongest holder protection and greatest user convenience. This enhances the overall value and trustworthiness of the NFT ecosystem.

🤔 Q&A: What Else Do You Want to Know? 🤔

Q: How do royalty-embedded blockchains guarantee that creators will receive their royalties? A: Royalty-embedded blockchains make royalties an integral part of their foundational code. Unlike app-level enforcement, which can be changed or scratched completely, node-level royalties are permanent and cannot be tampered with. This provides the highest level of guarantee for creators.

Q: Can embedding royalties in blockchains help NFTs become more popular again? A: Absolutely! By ensuring that creators receive a fair share of the profits each time their NFTs are traded, embedded royalties create a more sustainable ecosystem for artists. This incentive could lead to a renaissance for NFTs, sparking new business models and greater experimentation within the space.

Q: Are royalties the only function that should be enforced on-chain in the NFT world? A: While royalties are undoubtedly important, there are other functions that are best enforced on-chain as well. Chains with NFT functions, including royalties, hardwired at the protocol level offer greater holder protection and user convenience. This makes the overall NFT experience more robust and trustworthy.

The Future Looks Bright for NFT Creators 🌟✨💡

With royalty-embedded blockchains gaining momentum, the future looks bright for NFT creators. They can now rest assured that their hard work will be rewarded and that the creator’s economy within Web3 can thrive sustainably. As more platforms and organizations embrace this innovative approach, the NFT space will evolve into a more reliable and lucrative industry for artists worldwide.

So, fellow NFT enthusiasts, let’s celebrate the rise of royalty-embedded blockchains and the newfound security and prosperity they bring to the digital art world. It’s time to unleash your creativity and explore the exciting possibilities of Web3!

References: 1. Trump Sells Millions in Ethereum Following Woeful NFT Business 2. Nansen NFT Trends Dashboard 3. RARI Foundation Launches Mainnet Rari Chain Arbitrum 4. Testnet for an Ethereum Virtual Machine (EVM)-compatible chain 5. NFTs Eye Comeback Following Spot Bitcoin ETF Approval 6. Painful to Think About: NFT Creator Nate Alex on Selling 70 CryptoPunks Too Early

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