Popular non-fungible token (NFT) marketplace X2Y2 has flipped its decision to make creator royalties optional, a move that inspired several other marketplaces to follow suit.
X2Y2 said Friday on Twitter that it will now enforce creator royalties on all of the collections sold on its platform after being one of the first to drop its royalty requirements. Its model, called “Flexible Royalties,” sparked pushback from some NFT creators and marketplaces about ensuring that NFT creators are compensated fairly for their works.
X2Y2 referenced leading NFT marketplace OpenSea’s on-chain royalty enforcing tool, which will blacklist collections from being resold on marketplaces that don’t enforce royalties. It said that most new collections have opted for this model.
“We used to believe the best way to handle royalties is to give both parties, creators and traders, the right to choose,” the marketplace wrote on Twitter. “Putting belief aside, if there was anything self-evident in crypto, it’s the ‘code.”
According to a tweet from Twitter user Punk9059, about 30% of NFT trades since August have been royalty-free.
Last week, OpenSea pushed back against optional royalties, sticking to its decision to enforce creator royalties across its platform.
“Proud to stand with you – and the many brilliant creators in our community – on this critical measure,” said OpenSea in response to X2Y2’s announcement on Twitter.
Sign up for Crypto Investing Course, A weekly newsletter to be a smarter, safer investor in eight weeks.
Please note that our
has been updated
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a
CoinDesk is an independent operating subsidiary of
which invests in
As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of
which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG