In the Web3-is-the-internet-you-own era, NFT royalties have become a critical aspect of the creator ecosystem. Ensuring a robust solution for NFT royalties is vital for artists to generate sustainable income from their creative pursuits.
But finding a solution hasn’t been easy.
The ongoing debate surrounding NFT royalties and emphasize the importance of finding a solution to protect the interests of web3 creators.
As the web3 community continues to wrestle with the challenge of establishing a fair and effective NFT royalties solution, several points of contention have arisen.
Digital artists are increasingly finding greater financial success through web3 platforms as NFT sales and royalties from secondary sales offer a more lucrative revenue stream compared to traditional web2 platforms.
A royalties solution is an essential step forward in ensuring that individuals are fairly compensated for their creative contributions.
Let's examine some telling statistics:
In 2021, NFTs generated $3.9 billion for 22,400 web3 creators, resulting in an average revenue per creator of $174,000.
Comparatively, Spotify paid $7 billion to 11 million artists, translating to a per capita income of $636.
YouTube, the world's most popular video publishing platform, paid $15 billion to 37 million channels, equating to an average revenue of $405 per channel.
Meanwhile, Meta Platforms (formerly Facebook) distributed $300 million to more than 2.9 billion users, averaging a meager $0.10 per user.
These figures indicate that NFTs are quickly becoming a far more effective means of monetizing creative work compared to established web2 platforms for generating income from intellectual properties.
By championing a robust royalties solution, web3 has the potential to pave the way for a living wage for digital artists and creators. This shift towards equitable compensation can not only attract more talent to the web3 space but also empower creators to focus on their creative endeavors and produce innovative, groundbreaking work.
The ongoing debate surrounding NFT royalties highlights the complexity of balancing creators' rights with the practicalities of enforcement and implementation. Nevertheless, it is crucial for web3 creators to actively participate in the discourse and advocate for a royalties solution that protects their interests and sustains the growth of the creator ecosystem.
By uniting in the pursuit of a fair and effective royalties framework, the web3 community can establish a solid foundation for the future of digital art, creativity, and innovation. In doing so, web3 creators will be better equipped to generate sustainable income, secure their intellectual property rights, and contribute to a thriving, equitable creative landscape.
Sounds good to us.