The DeGods project introduces a 0% royalty policy, calling its decision “the next experiment.” This move relieves the collection of potential future royalties lawsuits.
Previously, before the advent of the NFT, art authors were paid a percentage of sales of their work in the secondary market. The main problem in this was the inability to track monetary transactions. NFT tokens have become such a solution.
Recently, however, more and more popular authors of NFT projects have refused royalties. For example, the CryptoPunks collection has long introduced a 0% royalty policy, and some even waive ownership of their digital art.
DeGods was the latest project to join this policy. The authors announced their decision on Twitter this Sunday, adding that they still think NFTs are a cool royalty concept.
DeGods was released last October. NFT holders can stake their tokens and get DUST for it.
DUST reacted to the news with a 4.9% drop. According to CoinGecko, the token is currently trading at $1.27.
Twitter users have had mixed reactions. Some feel that the decision to remove royalties suggests that DeGods is a rag pool.
The Solanart platform used to criticize such project decisions and sided with DeGods.
Dylan Shub, the founder of Crown Capital DAO, recalled to the project’s creators that they once forced them to charge royalties or denied service otherwise.
“In the short term, teams have the funds, but in the long term, royalties are the main incentive for teams to stay active, motivated, able to grow, and hire people in the space. DeGods are where they are thanks to royalties,” reads one tweet.
