NFT is just FT with skin:#
- Project Launch
Valuable mint or free mint, see who has better skills to grab more shares. Similar to the FT project's IDO, this part of the revenue is generally not the project's revenue target, mainly used to hype the project and provide liquidity. - Secondary Market
General MacArthur, a five-star general, once said that the happiest thing for a project is rising prices and trading volume. Good marketing can bring considerable royalty income to the project, with royalties, the market can be expanded, and the project can have more girls on their yachts.
Royalties#
Mandatory royalties are just a tool for NFT projects to rape consumers.
Opensea, as the largest and most widely used NFT marketplace, also supports consumers customizing royalties for projects. This is the trend and the only way. Because of the mandatory royalties imposed by the project, the seller must contribute part of the income to the project during the transaction. Over time, the project will become more confident. As long as the project treats users well, they can easily collect royalties. However, integrity is worthless when faced with money!
Canceling mandatory royalties can effectively protect the rights and interests of consumers and greatly weaken the dominance of the project. If the project is doing well, people will willingly pay royalties; if the project is not doing well, consumers can choose not to pay royalties. Even if the project rugs, it doesn't matter anymore. Consumers can trade without worries without paying royalties.
For true art NFTs, either choose to obtain consumer support and voluntarily pay royalties, or only release them in NFT markets that support mandatory royalties.
The Future of NFTs#
With the cancellation of mandatory royalties, the NFT trading market will diverge into two paths:
- Supporting customizable royalties, with a focus on a larger number of NFT collections;
- Mandatory royalties, with a focus on art NFTs.
NFTs free from the shackles of mandatory royalties can generate more possibilities like FT, which is a constraint for projects and a hope for consumers.
The NFT community free from the shackles of mandatory royalties will be more cohesive!
Expectations#
- In the future, we can avoid pitfalls based on whether NFT projects support customizable royalties.
- For NFT projects that support customizable royalties, if the project is doing poorly, let the garbage project roll. Without them, the project can still thrive, and they won't get a penny in royalties.