Yuga Labs denounces the politics of the NFT markets

First beneficiaries of royalties collected the business from NFT, Yuga Labs (BAYC) and its co-founder report the market policyof which Offshore. To perceive this feethe startup offers an alternative.

The foreign exchange market NFT it takes water, like the financial assets that are cryptocurrencies. And in a context of decline, markets they are gradually disengaging royalty collection on sale.

OpenSea is still dealing with. The NFT colossus on Ethereum has unveiled a tool for new collections. As for existing collections, it could stop imposing royalties. In any case, this is the scenario anticipated by Wylie Aronow.

A harmful rush of markets

The co-founder of Yuga Labsalias Gordon Goner, do not be under any illusions. He blames the markets for “sheer abandonment in a race to the bottom in an attempt to gain market share”.

As for Offshoreshe “made it clear that she intended to follow the rest of the herd “, Plays Wylie Aronow. And the Yuga Labs boss is not kind to the market (which generated $ 35 million in revenue from Bored Ape sales) and its competitors.

The NFT ecosystem would be a small part of what it is today if creator royalties didn’t exist. The main marketplaces of the last two years would be nowhere if they had not supported them ”, defends the leader.

For creators, it is therefore essential preserve the model of royaltywhile guaranteeing what constitutes the foundation of NFTs: the possession of digital rights by their holders.

Towards creating an authorization list

This is the reflection led by Yuga Labs and other NFT players, including pan of melon And 10KTF. Gordon Goner assures him, the introduction of the code in the smart contract in order to apply royalties to each transfer between wallets it is not possible without taxing the operations of the same user between his different wallets.

For Yuga Labs, therefore, the solution involves ” an authorization list “. This would allow” trading between normal portfolios (also known as externally held accounts or EOAs) “.

In addition, this list “would specifically allow markets that respect copyright “It is therefore up to the creators to modify the code of their smart contract to implement this system of authorization lists and thus maintain these royalties.

A DAO to rule the list and its rights

Gordon Goner acknowledges disadvantages to this approach. Therefore, it complicates the launch of new markets, which will have to appear in the list to carry out transactions.

But above all this method requires the maintenance of an “authorization list (or the oracle that contains the authorization list)”. centralization. “Bullshit”, retorts the co-founder of Yuga Labs. There remains one point to define.

It is indeed a governance problem. We just need to find the right structure and process for the governing body or DAO that controls the authorization list. “

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