Yat Siu, one of the people who founded the video game company Animoca Brands, says that royalties have helped the non-fungible token (NFT) economy grow.
The Hong Kong-based company has taken a strong stand for digital creators with its NFT licenses. Siu says that these licenses were given out so that creators could “protect their royalty rights in a legal way.” Siu talked about the company’s stance and the importance of creator rights and royalties at the recent NFT Paris conference.
Even though there was a bear market for most of 2022, the NFT sector made more than $24 billion in sales.
So, he said to Coindesk “That means that billions of dollars went to creators but, more importantly, an even larger number went to owners of the assets of these entities that fueled an industry that made it possible to create companies like Blur, OpenSea or Magic Eden.”
Siu thinks that the ecosystem wouldn’t have enough money to support new projects without royalties.
From our point of view, getting rid of that makes the industry go backward, he said.
Animoca Brands NFT Licences
Animoca Brands has always been in favor of creator royalties for NFT. Royalties for NFT creators are a key part of a decentralized and democratic ecosystem. They make sure that contributors or creators get their fair share of value, which in turn helps value creation across all NFT commons. We think that royalties are an important part of the Web3 philosophy.
So, Animoca Brands is releasing three NFT licenses that require creator royalties in exchange for permission to use the art and functionality of the NFT. Everyone can use these NFT licenses if they have a Creative Commons license.