Royalties in the NFT Realm: Our Perspective Amidst Growing Controversy

The digital frontier of NFTs (non-fungible tokens) is no stranger to innovation and controversy. Recently, a passionate debate about royalties has surged to the forefront, and as advocates for collector empowerment, we at TCG Fandom find ourselves deeply entrenched in this discourse.

OpenSea’s Shift in Perspective

OpenSea, once a trailblazer in the NFT marketplace, recently pivoted from its earlier support for royalties. Earlier this year, they ceased enforcing NFT creator royalties, allegedly to compete with platforms like Blur, which have never championed these royalties. By mid-August, OpenSea further distanced itself by discontinuing a tool that enabled creators to blacklist non-royalty enforcing platforms. Their rationale? A purported lack of adoption.

This move wasn’t without repercussions. The royalty earnings of Ethereum-based NFT projects plummeted to a two-year low, as data from analytics firm Nansen pointed out.

Rarible’s Rallying Cry

In contrast to OpenSea’s stance, Rarible, another pivotal NFT platform, has fiercely backed the concept of royalties. Their co-founder, Alex Salnikov, publicized a commitment in late August, vowing to resist the wave of diminishing royalties. He declared Rarible’s intention to stand by the very creators that have enriched the NFT landscape.

This proclamation seemed to resonate within the community. Data from DappRadar unveiled that, following Salnikov’s statement, Rarible experienced a 585% surge in 24-hour fiat trading volume.

Our Unwavering Commitment at TCG Fandom

The contrasting paths taken by platforms like OpenSea and Rarible underscore a broader discussion about the inherent value of graded TCGs and the collectors behind them. At TCG Fandom, we’ve always believed in championing collectors. By empowering content creators and collectors to determine their royalties, we’re not only championing the intrinsic value of digital collectibles, we’re also laying the groundwork for an entirely new Web3 ecosystem for TCG collectibles..

The Road Ahead

As the contours of the NFT world continue to shift, we remain steadfast in our mission. While platforms diverge in their approach, we at TCG Fandom are resolute in our commitment to collectors. Our choice to allow collectors to determine their royalties is a testament to our dedication to the graded trading cards and their collectors. We’re navigating this ever-evolving space with a clear vision: to prioritize and respect the significance of TCGs, ensuring they’re valued and rewarded. Looking forward, we envision a brighter, more inclusive NFT future where collectors and graded TCGs are celebrated equally.

Article about Rarible’s commitment to royalties: https://cointelegraph.com/news/nft-platform-rarible-pledge-royalties-trading-volumes-jump