On Royalties
If you haven’t read NFTStatistics (@punk9059) thread on the state of NFT marketplaces and royalties you should as royalties dominated the conversation on this week’s Parliament.
My take: this is a complicated topic and one that no single solution will fix. Artists were convinced to flock to NFTs because of the promise of long-term secondary sale royalties. Having those royalties disappear would reduce the incentives for artists specially those without big brand names. Marketplaces trying to make a business from enabling zero artist royalties feel wrong when the intent of the artists was clear from the moment they deployed their smart contract.
Kevin’s take was something like this: “there needs to be better tools for artists to manage dynamic royalties; when the floor hits a threshold (maybe below mint) zero royalties apply, else then artist royalties are enabled. Why hurt your supporters when they are also down?
In addition @divergenceharri pointed out in twitter that while OpenSea’s (OS) intentions were sound, the implementation of their code opened up another can of worms. Since there is no neutral party or organization defining what smart contract/marketplace or player to ban OS’s subjectiveness would transfer to the addresses in the code. Harri also pointed out some bugs that OS corrected during the week. I’m thankful for their efforts on this.
Where will this end and how does this impact Proof?
Kevin said that for now, “Proof is lucky to be well capitalized” and that they will work to find ways to reward those who pay royalties more than punish those who don’t. Nesting was a big step in this direction and I think Highrise might become an interesting place for artist tools that enable and empower artists with the same ethos.
FTX is on Fire 🔥… Gulp
While the general floors for NFTs didn’t go down this was a very hard week for the Web3/Crypto community. FTX a brand name that was thought as reputable ended up burning in flames and taking millions of dollars from retail consumers along with it.
It is going to take years for the whole community to recover the trust lost in this event. I feel horrible for those who lost money and urge the trolls to tone it down a little as no one else needs more salt on top of this wound.
To learn more of what happened I suggest checking out the Bankless Weekly Rollup in Youtube for this week.
MARFA
MARFA Texas is known for their unique art scene. Last January a NewYorker article shined a light on how the Art Blocks Gallery was changing that scene into a digital one. The article says: “The Marfa gallery is the physical embodiment of Art Blocks, a virtual platform for N.F.T.s that [Erick] Calderon launched at the end of 2020”. Erick also known as Snowfro and the creator of Chromie Squiggles (one of the most popular collections on ArtBlocks); took the opportunity during a Glitch Gallery event at MARFA to mention his upcoming drop at Mexico City which includes some cool IRL minting experiences.
Besides the apparently delicious burritos and BBQ Sauce there was no shortage of influencers like Tim Ferris and @DrewBarman Moonbirds Gin also.
I expect in the next few years that MARFA will become the SXSW of the serious generative NFT community.
That’s it for this week!
Reminder:
Don’t forget on November 18 the hotel group rates for PROOF Conference go online on the website.