Founders suggest an Allowlist system for creator royalties

Yuga Labs founders along with Gordon Goner reject the recent policies by NFT marketplaces regarding creator royalties and proposed an allowlist system controlled by a DAO in place of it.

For the past few weeks, many marketplaces, including Magic Eden and OpenSea turned to ditching the creator royalty or making it optional, causing disapproval from all well-known creators.

In his blog post, Goner defended the creator royalties by saying it was mainly about honoring the creators’ work but now it has turned into a profit-making business giving almost nothing to artists.

“For a lot of artists and creators, the existence of creator royalties has been the single most important factor that brought them into the ecosystem,” he said.

After consulting with the rest of the Yuga Labs’ founders and 10KTF, Goner presented two solutions to the problems regarding wallet transfers and creator royalties.

First, he demanded that people should be able to transfer assets from wallet to wallet for free because it will ensure over-the-counter (OTC) trade in the blockchain.

The second Goner suggested was the allowlist system to maintain creator royalties, which is the opposite of OpenSea’s blacklist system that blocks marketplaces that don’t give creator royalties.

The allowlist will allow trading between normal wallets and marketplaces that respect royalties. This model will be DAO-governed to maintain its authenticity and make it decentralized.

However, he didn’t propose any definite structure for the DAO and hoped the ecosystem would be able to design it.

Will the NFT marketplaces consider this proposal or stick to their current policies? Nonetheless, this has become a big challenge for NFT creators, especially those who are new to the space.

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