Galaxy Digital has published an exclusive report mentioning that up to $1.8B worth of royalties has been given to the developers of the NFT collections based on Ethereum. The report additionally pointed out that in 2021 the average amount of royalties existing on the OpenSea venue has elevated from three percent to double that (six percent).
Galaxy Digital’s Report Says NFT Developers Have Secured $1.8B in Royalties Up Till Now
This is noteworthy, keeping in view that the position of OpenSea is that of the biggest marketplace of NFTs in terms of its trading volume, as per DappRadar.
In addition to that, Galaxy Digital mentioned that ten names keep nearly twenty-seven percent of the cumulative market share of the royalty payments. Yuga Labs, known as the developer of the Bored Ape Yacht Club (BAYC) NFTs, has collected the majority of royalties.
The venue has witnessed more than $147M in payouts up till now. As per the data provided by Dune analytics and referred to in the respective report, an amount of nearly $91.6 was made by Nike – the platform which obtained RTFKT (a startup of digital collectibles) – in consolidated non-fungible token royalties.
Apart from that, the rest of the real-world companies such as McLaren Nickelodeon, Adidas, Gucci, and others have also earned from NFT royalties although the amount collected by them is much lower than the prominent Web3-based entities including World of Women, Doodles, The Sandbox, Art Blocks, and so on.
In August 2022, X2Y2 (a marketplace for non-fungible tokens) incorporated an optional structure of royalty payments for purchasers.
In the same vein, in the previous week, Magic Eden (the NFT platform based on Solana) decided to leave the responsibility of the royalty payments’ number on the collectors. NFT royalty counts as a comparatively unique phenomenon while looking at the whole history of the NFT world, per the report.
Report Cautions the Top NFT Brands Could Lose Significant Revenue without Royalties’ Enforcement
It noted that well-known brands with collections of non-fungible tokens tend to be deprived of the majority of revenue due to faulty royalty structures.
In the words of the report, in addition to the individual developers, chief brands including Adidas, Gucci, and Nike would expectedly lose the potential revenue of several million dollars without the enforcement of the royalties.
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