SHILL Issue 78

@kemos4be
Without royalties NFTs lose 50% or more of their value
proposition.
I will break this topic down into three main sections:
1. Broken Incentives — with royalties as the scapegoat.
2. Disruptive Potential — NFTs have very, very little
without royalties.
3. “Revenue Streams” — grasping for straws & very
shitty replacement for royalties.
Section 1: Broken Incentives
Incentive models have been broken since NFTs started
& they’re only getting worse. I’ll break this down into 3
parts: 1. The Past: Magic Eden & MOPI
2. The State of the Union
3. The Future: Without royalties, it’s worse
S1P1 Magic Eden is a masterclass in revenue maximization:
1. They charge 5-20% of mint to launch. 2.
They receive up to 10% of the royalties on an NFT they
launch. 3. They charge a 2% tx fee to trade on their
platform. 4. They also have VCs. GG, WP.
S1P1: ME launches projects they are heavily optimized
for MOPI (Mint Out, Pump It). This means royalties &
fees become extremely extractive: sometimes even
quadrupling the initial mint take. This was extremely
lucrative for
@MagicEden, especially with projects like @okaybears.
S1P1: The groundwork for the royalty’s debate was,
unintentionally, laid by @MagicEden a few months ago
when they were heavily promoting/marketing hyped
mints & eventual rugs. They optimized their entire
platform & the projects they launched for “Mint Out,
Pump It.” (MOPI)
S1P1: MOPI, a flipping-focused model, was pushed to
the extreme by ME:
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SHILL Issue #78