In recent years, the surge of Blur has resulted in numerous NFT marketplaces that opt not to enforce royalties, leaving the decision-making process to traders. However, 2024 appears to mark a shift in this paradigm, driven by creators aiming to reshape the landscape.
In a significant development on February 27, Yuga Labs made waves by announcing its intention to incorporate a filter into the smart contracts of select NFT collections. This filter would restrict the trading of these NFTs solely to marketplaces that enforce royalties, strategically aligning with the launch of its affiliated Magic Eden platform.
Following suit, De Labs, known for the popular DeGods and y00ts NFT collections, has embraced a similar stance.
Is this the Genesis of a Movement to Redefine the NFT Ecosystem?
On February 27, De Labs’ Chief Technology Officer, “Chills,” revealed that the y00ts code had been updated to permit transactions exclusively on platforms upholding royalties, such as Magic Eden.
The move by De Labs lends credence to the notion that Yuga Labs’ initiative could catalyse other creators to implement filters to safeguard royalties on their NFTs. Should these measures gain widespread adoption, platforms like OpenSea and LooksRare might witness another shift towards enforcing royalties.
Additionally, De Labs aims to leverage this strategy to strengthen its pool of creators. They announced plans to utilise royalties to acquire new talent and support existing creators.
A Strategic Approach
In an announcement, the De Labs team outlined their plan to enforce royalties on y00ts through Magic Eden, with all royalties allocated toward acquiring y00ts and endorsing creators with X badges. This initiative seeks to nurture the community of creators and builders, thereby enhancing the brand’s growth trajectory.
At present, Magic Eden data reveals that y00ts command a floor price of 0.73 ETH, reflecting a 1% increase over the past 24 hours.