X2Y2, a major NFT marketplace, has changed its royalty policy; here’s why

Here’s why the X2Y2 team’s decision to set 0% royalties could be critical for the advancement of “real” non-fungible tokens (NFTs).

Royalties are being removed from a major NFT marketplace.

Many Web3 and NFT fans commented about the X2Y2 team’s controversial move to change creator royalties yesterday, Aug. 27, 2022.

Creators will no longer receive royalties when their artworks are sold as a result of the new upgrade. On the one hand, this approach will significantly lower the revenue of NFT artists, prompting them to consider leaving X2Y2.

Some speakers, however, believe that eliminating royalties may drive artists to seek venture capital funding rather than retail-focused income streams. As a result, tokenized art will become a “genuine, profitable industry.”

In addition, Cygaar, an anonymous Azuki developer, offered a mechanism that would allow NFT developers to whitelist marketplaces where buyers of their tokens may offer them.

“0% royalties is not the way ahead,” says the X2Y2 crew.

Teams can use this tool to prevent their NFTs from being listed on zero-royalty sites.

In the face of criticism, the X2Y2 team issued a statement confirming that its royalties policy is still in the works. The final choice will be made by token holders, according to X2Y2 officials.

They also stated that eliminating royalties is not the best method to achieve the ideal economic model for an NFT marketplace:

0% royalties is most definitely NOT the way forward! We agree! We will be working w/ market participants from all sides to ensure it doesn’t become the norm as it is up to us, collectively as an industry, to set the right standards & pave the way for the future of the NFT space

Among all services developed after the 2021 NFT boom, X2Y2 is the largest new-gen marketplace for NFTs.