In a bid to fortify digital artists’ earnings within NFT marketplaces and propel Metaverse endeavors, the ‘Open Metaverse Alliance’ (OMA3), spearheaded by Animoca Brands’ CEO Rob Yung and UpLand’s Co-CEO Dirk Lueth, has brought together a formidable working group.
OMA3’s collaborative ensemble boasts leading blockchain, NFT, and Metaverse entities, including the renowned Bored Ape Yacht Club’s Yuga Labs, Magic Eden, Alien Worlds, The Sandbox, and Decentraland.
These Web3 industry titans have united with a common purpose: to tackle the persistent challenges surrounding NFTs and the Metaverse. Among their core objectives is the establishment of international standards for NFT marketplaces, which member companies commit to uphold, thereby rejuvenating original creator royalties.
Ongoing Hurdles for Creator Royalties
Creator royalties, initially devised to benefit the original artists of digital artworks by collecting fees on secondary NFT sales, typically range from 2.5% to 10%. However, these payouts have faced mounting hurdles.
Several NFT platforms have discontinued the practice of charging creator fees, opting to attract users through gamified financial incentives instead. The efficacy of this playful approach became evident when Blur surpassed OpenSea as the largest NFT platform by trading volume.
In a surprising twist, OpenSea, despite previous assurances, announced in August that it would no longer impose such fees for creators. In response to this decision, prominent NFT brands, including Yuga Labs, declared their withdrawal from the platform—a substantial blow for OpenSea, considering Yuga’s collectibles have generated over $9 billion in trading volume collectively.
Protecting the Metaverse Vision
Members of OMA3 firmly believe that the cessation of creator royalty enforcement jeopardizes not only the NFT ecosystem but also the core tenet of Metaverse advancement. NFTs play a pivotal role in crafting an interconnected online landscape, where virtual assets can seamlessly move across platforms, reshaping digital ownership.
Rob Yung, in a recent interview, noted that many NFT buyers presently prioritize short-term financial gains over long-term sustainability. This is where OMA3 steps in, striving to preserve creator royalty payments as a means to safeguard what Yung describes as the “utopian world” of the Metaverse.
On a mission to surmount these persistent challenges, the alliance’s efforts underscore a commitment to upholding the integrity of the NFT landscape and the broader Metaverse vision. The OMA3 website asserts, “It’s time for creators to be in control of their assets, not platform owners,” promoting innovation and inclusivity driven by decentralization.
The Open Metaverse Alliance stands as a guiding beacon for NFT and Metaverse creators, as well as Web3 enthusiasts, dedicated to the construction of a more vibrant and equitable virtual world, safeguarding creators and their earnings.
