TL; DR
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Monax Labs just launched a new platform called ‘Aspen,” which uses the “scorched earth” method we discussed earlier (minus the image darkening).
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Monax Labs collaborated with the Consortium key NFT project to test out the concept. Consortium Key saw a jump from 10% of current holders paying royalties to 90% in a six-month period (!).
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Our hope is this: Buyers are quickly losing faith in and abandoning royalty-free marketplaces due to platforms like Aspen, making royalty enforcement a must-have once again on all major marketplaces.
Full story
Remember when we wrote late last month about the “scorched earth” method of getting back NFT royalties?
ICYMI, here’s the gist of the idea:
Automate NFT collections so that if an item is traded on a platform that doesn’t honor royalties, it is immediately bricked.
This means the image will be blacked out and all functionality (e.g. access to private communities/events) will be disabled until royalties are paid.
This would make royalty-free marketplaces toxic in the minds of buyers, turning zero royalties from a “benefit” to a liability.
Well… it turns out our thoughts aren’t as original as we previously imagined.
Monax Labs just launched a new platform called ‘Aspen,” which does just that (minus the image blackout).
And apparently it works!
Monax Labs collaborated with the Consortium key NFT project to test out the concept. Consortium Key saw a jump from 10% of current holders paying royalties to 90% in a six-month period (!).
This is a big step forward!
Ensuring that both holders and creators can derive monetary value from an NFT series over time will improve the overall health of the space in the long term.
Unfortunately, there is a major downside to all of this…
Which is to say, this sucks for buyers! They must pay the royalties owed by the seller.
Our hope is this:
Buyers are quickly losing faith in and abandoning royalty-free marketplaces due to platforms like Aspen, making royalty enforcement a must-have once again on all major marketplaces.
Right now it feels like a gamble…but we can dream!