{"id":9137,"date":"2023-07-06T06:04:29","date_gmt":"2023-07-06T06:04:29","guid":{"rendered":"https:\/\/nft.runfyers.com\/index.php\/2023\/07\/06\/declining-royalty-payments-nansen-study-highlights-nft-creators-concerns\/"},"modified":"2023-07-06T06:04:29","modified_gmt":"2023-07-06T06:04:29","slug":"declining-royalty-payments-nansen-study-highlights-nft-creators-concerns","status":"publish","type":"post","link":"https:\/\/nft.runfyers.com\/index.php\/2023\/07\/06\/declining-royalty-payments-nansen-study-highlights-nft-creators-concerns\/","title":{"rendered":"Declining Royalty Payments: Nansen Study Highlights NFT Creator&#8217;s Concerns"},"content":{"rendered":"<p><\/p>\n<div>\n<p>NFT creators have experienced a significant decline in royalty payments, reaching a two-year low in June, according to data analytics platform Nansen. In April 2022, creators earned a staggering $76 million in one week, but in June, the earnings dropped to a mere $3.8 million. This downward trend has raised concerns within the NFT community about the sustainability of creator royalties.<\/p>\n<p><strong>TL;DR:<\/strong><\/p>\n<ul>\n<li>NFT creators experienced a sharp decline in royalty payments. The markeet hit a two-year low in June, raising concerns about the sustainability of creator earnings.<\/li>\n<li>The drop in payouts is attributed to the emergence of royalty-optional marketplace Blur and OpenSea\u2019s policies. This allows collectors to choose their royalty contributions.<\/li>\n<li>Well-established NFT collections like Bored Ape Yacht Club and Azuki continue to generate substantial royalties, despite the overall decline in payments.<\/li>\n<\/ul>\n<p><noscript><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-113985 size-full\" src=\"https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-57.png\" alt=\"picture of NFT &quot;plugged-in&quot; to different currencies, symbolizing creator royalty payments globally \" width=\"1920\" height=\"1080\" srcset=\"https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-57.png 1920w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-57-300x169.png 300w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-57-1024x576.png 1024w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-57-768x432.png 768w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-57-100x56.png 100w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-57-150x84.png 150w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-57-450x253.png 450w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-57-1200x675.png 1200w\" sizes=\"(max-width: 1920px) 100vw, 1920px\"\/><\/noscript><\/p>\n<h2><span id=\"The_Decline_Of_NFT_Creator_Royalty_Whos_To_Blame\">The Decline Of NFT Creator Royalty: Who\u2019s To Blame?<\/span><\/h2>\n<p>The decline in payouts has been attributed to the emergence of royalty-optional marketplace <a href=\"https:\/\/nftevening.com\/blur-marketplace-explained-what-you-should-know\/\" target=\"_blank\" rel=\"noopener\">Blur<\/a> and <a href=\"https:\/\/nftevening.com\/what-is-opensea-a-guide-to-the-most-popular-nft-marketplace\/\" target=\"_blank\" rel=\"noopener\">OpenSea\u2019s<\/a> policies. These allow collectors to choose their royalty contributions. While the practice of contributing additional royalties is not widespread, it has had a noticeable impact on overall creator earnings. Despite the drop in royalty payments, several well-established NFT collections have continued to generate substantial earnings.<\/p>\n<p>OpenSea requires collections to include an on-chain enforcement method in their smart contract. This ensures creator earnings, while Blur enforces a minimum of 0.5% royalties. However, it seems that the practice of additional royalty contributions by collectors is uncommon.<\/p>\n<p><a href=\"https:\/\/nftevening.com\/yuga-labs-a-complete-guide-to-the-web3-giants\/\" target=\"_blank\" rel=\"noopener\">Yuga Labs<\/a>, the creator of popular collections like Bored Ape Yacht Club and Mutant Ape Yacht Club, has accumulated nearly $166 million in collective royalties since their inception. Chiru Labs\u2019 flagship Azuki collection has grossed over $58 million in royalties, including its derivative projects BEANZ and Elementals.<\/p>\n<figure id=\"attachment_113984\" aria-describedby=\"caption-attachment-113984\" style=\"width: 1920px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-113984 size-full perfmatters-lazy\" alt=\"creator royalties Nansen data \" width=\"1920\" height=\"1080\" src=\"https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56.png\" srcset=\"https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56.png 1920w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56-300x169.png 300w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56-1024x576.png 1024w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56-768x432.png 768w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56-100x56.png 100w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56-150x84.png 150w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56-450x253.png 450w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56-1200x675.png 1200w\" data-sizes=\"(max-width: 1920px) 100vw, 1920px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-113984 size-full\" src=\"https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56.png\" alt=\"creator royalties Nansen data \" width=\"1920\" height=\"1080\" srcset=\"https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56.png 1920w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56-300x169.png 300w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56-1024x576.png 1024w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56-768x432.png 768w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56-100x56.png 100w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56-150x84.png 150w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56-450x253.png 450w,   https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-56-1200x675.png 1200w\" sizes=\"(max-width: 1920px) 100vw, 1920px\"\/><\/noscript><figcaption id=\"caption-attachment-113984\" class=\"wp-caption-text\">All Time Creator Royalty Data, Source: <a href=\"https:\/\/www.nansen.ai\/\" target=\"_blank\" rel=\"noopener\">Nansen<\/a><\/figcaption><\/figure>\n<p>The decline in royalty payments began before the floor price of <a href=\"https:\/\/nftevening.com\/bored-ape-yacht-club-the-avatar-collectibles-with-the-biggest-community\/\" target=\"_blank\" rel=\"noopener\">Bored Ape Yacht Club<\/a> reached a 20-month low and before Azuki\u2019s Elementals mint faced challenges. This suggests that other factors have contributed to the decrease in earnings for creators.<\/p>\n<p>While enforcing NFT royalty payments has been a source of tension between platforms and creators, it appears that collectors have continued to forgo paying optional royalties.<\/p>\n<p>Nansen\u2019s report indicates that royalty payments in June hit a two-year low. This report sees creators collectively earning 2,000 ETH (about $3.8 million) during the peak week. In contrast, the peak week in April 2022 saw creators earn 28,000 ETH (nearly $76 million).<\/p>\n<h2><span id=\"NFTs_Rise_To_The_Challenge\">NFTs Rise To The Challenge<\/span><\/h2>\n<p>Despite the challenges faced, blue-chip NFT collections have managed to generate substantial royalties. Yuga Labs has amassed nearly $166 million in collective royalties across its collections. Meanwhile Chiru Labs\u2019 Azuki collection and its derivative projects have grossed over $58 million in royalties.<\/p>\n<p>The significant decline in NFT royalty payments observed in June raises questions about the sustainability of creator earnings in the market. The rise of royalty-optional platforms and flexible policies have influenced overall earnings for creators. However, the success of notable collections indicates the potential for sustainable earnings in the NFT space.<\/p>\n<p>As the NFT market evolves, it remains to be seen how creators and platforms will adapt to ensure a thriving ecosystem for NFT creators. Finding a balance between optional royalties and maintaining sustainable earnings is crucial in shaping the future of the NFT industry.<\/p>\n<p><iframe data-test-id=\"beehiiv-embed\" width=\"100%\" height=\"320\" frameborder=\"0\" scrolling=\"no\" style=\"border-radius: 4px; border: 2px solid #e5e7eb; margin: 0; background-color: transparent;\" class=\"perfmatters-lazy\" data-src=\"https:\/\/embeds.beehiiv.com\/37fed65e-f01c-4c4c-b8f1-1b71da0be0a4\"><\/iframe><noscript><iframe loading=\"lazy\" src=\"https:\/\/embeds.beehiiv.com\/37fed65e-f01c-4c4c-b8f1-1b71da0be0a4\" data-test-id=\"beehiiv-embed\" width=\"100%\" height=\"320\" frameborder=\"0\" scrolling=\"no\" style=\"border-radius: 4px; border: 2px solid #e5e7eb; margin: 0; background-color: transparent;\"><\/iframe><\/noscript><\/p>\n<div class=\"bottom-text__wrapper post-content\">\n<p>\u00a0<\/p>\n<hr\/>\n<p><em>All investment\/financial opinions expressed by NFTevening.com are not recommendations.<\/em><\/p>\n<p><em>This article is educational material.<\/em><\/p>\n<p><em>As always, make your own research prior to making any kind of investment.<\/em><\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/nftevening.com\/declining-royalty-payments-nansen-study-highlights-nft-creators-concerns\/\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>NFT creators have experienced a significant decline in royalty payments, reaching a two-year low in June, according to data analytics platform Nansen. In April 2022, creators earned a staggering $76 million in one week, but in June, the earnings dropped to a mere $3.8 million. This downward trend has raised concerns within the NFT community [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9138,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[9],"tags":[21],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/nftevening.com\/wp-content\/uploads\/2023\/07\/Untitled-design-57.png","jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/9137"}],"collection":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/comments?post=9137"}],"version-history":[{"count":0,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/9137\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/media\/9138"}],"wp:attachment":[{"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/media?parent=9137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/categories?post=9137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nft.runfyers.com\/index.php\/wp-json\/wp\/v2\/tags?post=9137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}