The current copyright management in the NFT sector proves to the entire crypto ecosystem that it may well have been a simple speculative bubble. Indeed, for the past few months a rather silent storm has been shaking the market for these non-fungible tokens. With the sole ambition of deprive artists and other creators of the possibility of collecting royalties on secondary markets.
A dynamic initiated last August by one of the umpteenth vampires of the leader Opensea, the x2y2 platform. With the introduction of “flexible royalties” allowing buyers not to pay the royalties programmed by the creators of the collections concerned. An interesting option for lovers of blind speculation. A simple theft organized for those who envision the future of this sector with, and not against, the digital artists who are driving its development.
NFT vs copyright
Unfortunately, the current trend in the cryptocurrency industry seems to be heading for the worst, yet starting from the best. With an increasingly systematic abandonment of principle of decentralization inscribed at the center of this ecosystem. And in the NFT sector, a questioning of royalties applied by artists which tends to become widespread. Even though, as explained Jacob Horneco-founder of the NFT Zora platform, this is “one of the most compelling features” of this digital economy.
A subject addressed by the latter during an interview given to the media Decrypt. And during which he does not fail to recall “his sympathy alongside the artists” in a file that increasingly divides this very young ecosystem. Because the current trend which tends to make artist royalties “optional” – in the best of cases – amounts in fact to canceling them purely and simply… Partly because collectors (investors?) do not play the game.
” The fact that the first wave NFT touted royalties is such a strong feature. And it worked for a while, but it’s brought us to this point where the actual functionality of these charges is questioned in practice. And we need to redefine what artist ownership looks like in this context. ? »
NFT – Rethinking copyright management
It is not well seen to criticize speculation in the cryptocurrency industry. Yet it is this principle that is in the process of sacrifice the artists of the NFT sector on the hotel of too immediate a profit. But do not have a bad conscience, because it is ultimately only a leveling not the bottom that will align this space of digital creativity with the worst principles set up by the traditional art world. With artists who will remain poor, even once success is achieved, while their “collectors” will continue to get richer.
Which is not to say that it is impossible to make money by buying works of art, when all parties agree. But in this case without making the income of the artists at the origin of these profits “optional”. And that even if, as Jacob Horne explains, royalties ranging from 5% to 20% can have “a huge impact on the way speculative traders think about this principle”. Because the rule is simple: without artists there is no art. But without speculators, art will always exist…
” I think the situation we’re in right now begs the question of how it would be possible to define new royalty models that don’t rely on secondary commerce, but actually start allowing artists to keep same collection property”
And since buyers of NFTs apparently no longer want to pay royalties, artists will have to find new sources of income. With for example, as Jacob Horne suggests, the retention of a percentage of the quantity issued at the time of the launch of a new collection. This is to ensure gains commensurate with success. Because it will not be possible to build a web3 without taking into account all the actors of this new trend supposed to be based on community and decentralized construction…