In an effort to secure digital artists’ revenues on NFT marketplaces and drive Metaverse initiatives, the ‘Open Metaverse Alliance’ (OMA3) – led in particular by Animoca Brands CEO Rob Yung and UpLand co-CEO Dirk Lueth – has established an important working group.
OMA3’s collaborative team consists of several leading blockchain, NFT and Metaverse companies, including Yuga Labs, Magic Eden, Alien Worlds, The Sandbox and Decentraland of the famous Bored Ape Yacht Club.
Together, these Web3 powerhouses are on a shared mission to overcome the ongoing NFT and Metaverse-related dilemmas. One of its core goals is to create international standards for NFT marketplaces that affiliates want to enforce in an effort to restore the original creator’s shares to full power.
Announcing OMA3’s defense of royalties for NFT creators, including the support of @MagicEden, @yugalabs, @animocabrands, and the rest of our fantastic membership. We are happy with the #NFFTCommunity to join OMA3 and strengthen our efforts. @decryptmedia: https://t.co/pOyQJ81pOp
— OMA3 (@oma3dao) October 17, 2023
Ongoing royalty challenges for creators
Creator royalties, initially intended to benefit the original artists of the digital artworks by being levied on secondary sales of NFTs, typically range from 2.5% to 10%. However, these payouts have faced increasing challenges.
Numerous NFT marketplaces have abandoned the practice of creator fees, some of which are attracting users by offering gamified financial incentives instead. The effectiveness of this playful approach quickly became apparent, helping Blur overtake OpenSea as the largest NFT platform by trading volume.
In a surprising turn of events, regardless of previous confirmations, OpenSea revealed in August that it would no longer impose such fees on creators. In response to the market’s decision, several heavyweight NFT brands took action. One of these was Yuga Labs, which revealed that it is no longer selling its virtual assets on the platform – a huge loss for OpenSea, as Yuga’s collectibles have collectively generated more than $9 billion in trading volume.
Protecting the Metaverse Vision
Participants in the OMA3 believe that ending creator royalty enforcement not only endangers the NFT ecosystem, but also the foundational tenant of Metaverse progression. NFTs help create a connected online landscape where virtual assets can freely roam between these platforms to reimagine digital ownership.
According to Yung in a recent interview, many NFT buyers are currently more interested in short-term financial gain than long-term well-being. So this is where the OMA3 comes into the picture, attempting to protect creator royalty payments as a means of protecting what he describes as the Metaverse being a “utopian world.”
On a mission to overcome these ongoing challenges, the alliance’s efforts demonstrate a commitment to maintaining the credibility of the NFT landscape and the broader Metaverse vision. “It’s time for creators to take control of their assets, not platform owners,” says the OMA3 website, which promotes innovation and inclusivity driven by decentralization.
The Open Metaverse Alliance serves as a guiding light for NFT and Metaverse creators as well as Web3 enthusiasts, driven to safely and fairly build a more thriving and equitable virtual world.
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