NFT makers have earned up to $1.8 billion in royalties

Non-fungible tokens (NFT) are unique digital tokens to which all kinds of things can be linked. Think digital art, digital clothing and much more. Also, NFTs can be programmed in such a way that the original creator royalties receives each time an NFT is sold. From a recent report Galaxy Digital shows that this has become a sizeable market.

$1.8 billion in royalties for NFT publishers

The report reveals a total of $1.8 billion in royalties earned to date by issuers of well-known Ethereum (ETH)-based NFTs. By far the biggest recipient was the creator of the Bored Ape Yacht Club collection. Yuga Labs received more than $147 million.

Furthermore, it appears that only 10 parties receive 27% of all royalties. Among the big earners are names like Nike with $91.6 million, Adidas and Gucci. However, for the last two parties mentioned, the NFT royalties were only minor sources of income.

With or without NFT royalties?

There is currently a discussion about whether platforms should charge royalties. In the report, the researchers state about the situation:

“Aside from individual creators, big brands like Nike, Gucci and Adidas are also missing out on tens of millions of dollars in potential revenue if royalties are no longer enforced. We expect these huge legacy institutions and creators of NFTs to fight hard to maintain their royalty-driven revenue streams from Ethereum-based NFT collections.”

Although it may not be ideal for buyers for an extra amount to be added, it is an important source of income for publishers. It is therefore expected that the big names will face considerable opposition if marketplaces such as OpenSea ban the structure.

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The past few days there have been a number of major developments in the NFT news. For example, the large marketplace Rarible released a major update. With the update, it aims to offer buyers the best price available in various markets.

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