Solving Web3’s royalty issues

NFTs and identity ownership

The topic of NFT royalties has been a contentious one. There are people who want to abolish them and people who insist on keeping royalties for NFT sales or else…

There are also people who are trying to solve this problem. A new standard for enforceable onchain programmable royalties was recently created by a blockchain gaming company. It can be applied to a variety of use cases other than simple end-to-end royalty transactions.

ERC721-C gives creators the ability to block zero-fee exchanges from platforming their works. This new type of customizable royalties contract allows creators to choose where their NFTs are sold and empowers them to filter interactions from only the contracts and applications of their choosing.

According to Langston Thomas, ERC721-C could potentially be used for community-building initiatives, as royalties from sales could be automatically split between, for example, members of a DAO or winners of a contest. The new type of token standard is built to be fully backward compatible, meaning it will function without issue with existing chain and marketplace rules.

In the first edition of this newsletter I quoted Chris Dixon who said web1 is ‘read’, web2 is ‘read and write’, and web3 is ‘read, write, and own’. Let’s see what the word ‘own’ means in the context of social media.

The key to achieving this is the decentralization of identity and the use of portable profiles. No need for multiple accounts for each platform, but one profile that I can connect to any application without losing my data.

According to David Tomu, creators should embrace decentralized solutions that allow their transactions, collectors, contributions, and audience to be securely stored onchain. Interoperability, both technically and socially, plays a crucial role in this process.

I highly recommend reading his article to understand why the concept of owning your online identity and content is central to creating a more equitable and empowering social media landscape.

UnleashNFTs is an AI-powered NFT analytics and forensic dashboard that provides reliable insights into popular and emerging NFT collections, marketplaces, and the overall NFT market.

According to bitsCrunch, its platform offers in-depth analysis, research, and statistics into the NFT ecosystem that allows users to make informed decisions on the purchase and sale of non-fungible tokens, as well as understand critical indicators like market capitalization, trading volume, and other trading activities.

My name is Petar Kashev and I’m a marketing professional from Bulgaria 🇧🇬 You can follow me @petar on Warpcast, on Bluesky, or message me @petar on Telegram.