OMA3, which includes Yuga Labs and Magic Eden, is starting work to set market standards for creator royalties
In an effort to safeguard the fundamental principles of the crypto ecosystem, OMA3 (Open Metaverse Alliance for Web3) @oma3dao, a consortium comprising several blockchain, NFT, and metaverse entities, has initiated a critical mission. They aim to develop standardized measures ensuring the longevity of creator royalties in the ever-evolving landscape of NFT marketplaces.
Announcing OMA3's defense of NFT creator royalties, including the support of @MagicEden, @yugalabs, @animocabrands, and the rest of our fantastic membership. We welcome the #NFTCommunity to join OMA3 and reinforce our efforts. @decryptmedia: https://t.co/pOyQJ81pOp
— OMA3 (@oma3dao) October 17, 2023
OMA3 Pioneering Working Group
OMA3 unveiled a pioneering working group on Tuesday, uniting industry frontrunners such as Yuga Labs, renowned for creating the influential NFT collection Bored Ape Yacht Club, and Magic Eden, the multi-chain NFT marketplace originating from Solana. The primary objective of this consortium is to establish unified standards for creator royalties, crucial percentages (ranging from 2.5% to 10%) designed to directly benefit creators from secondary sales of NFTs.
OMA3 will look for a solution to the problem with royalties for authors
This move comes amidst challenges faced by creator royalties. With the onslaught of a crypto bear market last year, several emerging NFT platforms started discarding creator fees. Some even introduced gamified financial incentives (for example, Blur NFT marketplace), aiming to allure users away from established platforms like OpenSea. This strategy proved remarkably effective, leading to platforms like Blur outperforming OpenSea in trading volume by February this year. Notably, OpenSea itself, after a defiant stance, eventually stopped enforcing creator fees.
The Significance of Creator Royalties
For OMA3, this shift signifies more than just a challenge to the NFT ecosystem—it poses a threat to the cherished concept of a metaverse. The dream of an interoperable online world where virtual possessions could fluidly move from one platform to another is at stake. Robby Yung, CEO of Animoca Brands and a co-founder of OMA3, emphasized the pivotal role of creator royalties in this scenario. He stated that these royalties are not merely about fairness and respecting creators; they are integral to interoperability. Without the incentive of royalty payments, creators might be disinclined to share their content in the interconnected metaverse.
OMA3 towards a Unified Approach
The working group within OMA3, featuring key participants like Animoca Brands, Yuga Labs, Magic Eden, Decentraland, The Sandbox, Alien Worlds, and Upland, will explore strategies to protect creator royalties across the market. Universal standards for NFT marketplaces that member companies adhere to might be the key solution. Mike Seavers, CTO of Yuga Labs, affirmed their commitment to building an interoperable and equitable Web3 world and expressed enthusiasm for collaborating with OMA3 to achieve this goal.
In response to recent decisions by NFT marketplaces, several heavyweight NFT brands, including Yuga, have threatened to withdraw their compatibility with these platforms. The move by OMA3 marks a significant step toward preserving the integrity of creator royalties in the dynamic landscape of digital assets. Stay tuned for further developments as this alliance strives to shape a fairer and more sustainable online environment for creators.
