📌 NFT Royalties Are Here To Stay

Welcome to 2023. You survived one of the worst years of crypto and are still reading Nutshell Daily! You are defintely going to make it champ! 🏆 

Apologies for the irregular timing today.

So let us look over what we will be discussing today!

• NFT Royalties Are Here To Stay 📌

• PLUS: This Country is Crypto Rich 🏦

• Some other NEWS in a Nutshell 🥜

• Nutty Meme 🥜

Royalties are the new passive incomeNot everyone is happy with the outcomeSome country made some bags in the mayhemHope everyone gets back funds without any problem

NFT Royalties Are Here To Stay 📌

The royalties debate was one of the most popular topics of 2022. The public was split over whether NFT collections should have, 🆚

• Royalties ✅

• NOT have Royalties ⛔

What are royalties? Royalties are taxes you pay to the creator of a NFT collection whenever you trade their collections in marketplaces. Even marketplaces have royalties (or transaction fees) 💸

So having royalties meant more money for creators and not having any royalties meant more money for traders.

The NFT marketplaces tried their best to pacify both opposing ends. ☮️ Many marketplaces implemented no royalties as an option for traders. 🥳

However, everything backfired when Opensea introduced a protocol where creators of NFT collections were able to decide whether they wanted to enforce royalties on their collections. 🧑‍⚖️

This shut down the debate largely, as it was decided that creators had the last word on the topic. 📣

A similar story is now taking place on another popular NFT blockchain. 📚

The blockchain that has seen it all and is still somehow surviving, namely Solana, is set to receive an update to its NFT standard.  🫡

Metaplex, the creator of the NFT standard on Solana, will be introducing an option where creators can enable royalty enforcement. 🥹

I mean who is going to say no to free money, right?

What about the existing collections?

Existing collections will have 2 paths to enforce royalties. 👀

• A community vote ⚖️

• A timed upgrade after 14 days. ⌛

Some more points:

• The creators of NFT collections will need to communicate their decisions to their community themselves. 📣

• Metaplex will be opening a separate Twitter account to post updates as well. 🌞

• Existing NFT collections will have 90 days to decide their path before the migration option shuts down forever. ⏩

• Creators will have an option to customise which marketplaces or programs are allowed to trade their collections. 💪

Nutty Take 🥜

We could literally write a page on the topic of royalties. There are many arguments for each side. The market will hopefully generate a solution that is a win for both sides. 📄 (we personally do not think the current setup is doing that for now.)

This Country is Crypto Rich 🏦

The Securities Commission of the Bahamas announced that it has over $3.5 billion worth of cryptocurrency in safekeeping from FTX. 👏

According to the media release, the Securities Commission of the Bahamas forced SBF to transfer all its digital assets to state wallets after the order got approved by the Supreme Court of the Bahamas. ⚖️

According to the statements issued, the assets will be held in safekeeping until more clarity on how the assets should be handled is obtained. 🦺

Nutty Take 🥜

It is certainly a relief to see such a big amount in safe hands. Thankfully, this amount did not get stolen in the FTX hack, worth several hundred millions. 💸

We can only hope that depositors get a significant portion of their money back if the Bahamas authorities are not biased when returning funds. 🥹

However, this also points to a problem. 🤔

This action provides a reason to justify government interference in cryptocurrency management under the pretext of security. (which is fine up to a point) 👆🏻

This year, we can expect more clarity on the crypto regulations each country has in store for us. 🫙

Some other NEWS in a Nutshell 🥜

• An OG Bitcoin programmer lost $3.3 million in Bitcoin (Over 200 BTC). [Defintely not a good start to the year]

• The game developer for Final Fantasy, Square Enix, is unfazed by the bear market and is determined to roll out blockchain games in the near future.

• Cameron Winklevoss writes an open letter to Genesis demanding it to pay back the $900 million it owes to Gemini.

Nutty Meme 🥜

That is a wrap for today! Meet ya on Wednesday!