Exploring the Impact of NFT Royalties on Budgeting Strategies
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Chapter 1: The Current State of NFT Royalties
NFT royalties are currently optional, leaving many teams to ponder how they can effectively budget for them. This raises the question: What should NFT teams anticipate regarding royalties, particularly when budgeting for 0% seems like a viable option?
Recently, OpenSea announced significant changes concerning the royalty structure, which got me thinking about the typical royalty realizations for NFT teams in this new 100% voluntary landscape. A noteworthy example surfaced in a Twitter post by SkylineETH, shedding light on the situation.
Section 1.1: Case Study - Yogapetz
The Twitter post discussed the Yogapetz NFT collection, which has gained considerable attention. The core of Skyline's argument revolves around whether this NFT drop is entitled to any royalties at all. However, the post provides valuable insights into the actual outcomes.
To illustrate, Yogapetz has achieved over 900 ETH in trading volume on secondary markets but has only garnered 2.7 ETH in royalties, despite establishing a 5% royalty request on OpenSea (and potentially other platforms).
The mathematics is straightforward: they aimed for 5% in royalties but only realized approximately 6% of that total, equating to 2.7 ETH. This suggests that NFT teams might generally expect to budget around 6% of their stated royalty, particularly if it’s set at 5%.
While this isn’t a substantial amount compared to the heights of NFT sales in the past, it does provide a reference point.
Jim Dee, a seasoned writer, developer, and multimedia creator from Portland, shares his insights on this evolving landscape. For more about him and his work, visit JPD3.com.
Chapter 2: Understanding NFT Royalties
In the video "Understanding NFT royalties | Michael Blau," the complexities of NFT royalties are explored, emphasizing their significance in the broader NFT ecosystem.
Additionally, the video "New Way to create PASSIVE INCOME with NFT Royalties" discusses innovative strategies for generating income through NFT royalties, providing further context to the budgeting challenges NFT teams face.