Yuga Labs, a top NFT studio, has announced it will no longer support marketplaces that do not uphold creators' royalties, marking a significant move towards a creator-led web3. This decision coincides with the launch of Magic Eden's Ethereum marketplace. Collections with royalty filters will now only be traded on platforms that respect creator royalties.
This shift comes after Blur gained dominance in NFT trading volume by offering generous incentives and reduced royalty fees, prompting other marketplaces like OpenSea to follow suit. Yuga Labs' revenues declined due to lower royalty structures and declining NFT trading volumes. In November, Magic Eden partnered with Yuga Labs to launch a marketplace contractually obligated to enforce creator royalties.
While this decision may not have an immediate impact on revenue, it signals a commitment to supporting creator royalties. However, Yuga Labs' top collections, Bored Ape Yacht Club and Mutant Ape Yacht Club, remain unaffected. The company released a list of collections that will only trade on platforms protecting royalty payments, including Otherside collections and Moonbirds NFTs.
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