Yuga Labs Leads NFT Royalty Revolution: Here’s Why

Yuga Labs Takes Stand For Creators’ Royalties

In a move echoing the ethos of creator empowerment in the rapidly evolving NFT landscape, Yuga Labs, a leading NFT studio, has announced its stance to uphold creator royalties ahead of the launch of Magic Eden’s Ethereum marketplace.

Its decision signals a pivotal shift toward a more creator-centric Web3 ecosystem. Yuga Labs declared that it would sever ties with marketplaces that fail to honor creators’ royalties, indicating its commitment to championing the rights of NFT creators.

A representative from Yuga Labs reiterated the company’s renewed commitment to safeguarding creators’ rights and ensuring fair compensation. The announcement comes amidst a backdrop of industry shifts, with market dynamics influenced by platforms offering enticing incentives and revised royalty structures.

Notably, Blur’s rise to prominence, driven by its competitive incentives and reduced royalty fees, catalyzed a ripple effect across the NFT landscape. Subsequently, major platforms like OpenSea followed suit, adjusting their royalty structures to remain competitive.

However, Yuga Labs didn’t make similar changes to its creators’ royalties despite declining trading volumes and shifting market dynamics, which continue to impact its revenue streams. The pivotal partnership with Magic Eden in November marked a move towards enforcing creator royalties within the Ethereum NFT marketplace, underscoring Yuga Labs’ unwavering dedication to creators’ rights.

A Monumental Step

While the announcement signifies a monumental step towards a more equitable NFT ecosystem, Yuga Labs remarked that it would not withdraw support for its flagship collections – the Bored Ape Yacht Club and Mutant Ape Yacht Club. These collections, comprising the majority of royalty-generating NFTs, remain unaffected by the decision. Steven Zheng, a research analyst, opined that the decision would not have an instant financial effect.

However, it demonstrates the firm’s dedication to nurturing a just and lasting NFT environment. Yuga Labs further listed the collections that will exclusively trade on marketplaces that provide the right policies for safeguarding creator royalties. These collections include various Otherside collections linked to the company’s metaverse platform and select Moonbird NFTs, recently acquired by Yuga Labs.

South Korean Officials To Consult With Gary Gensler On NFT Regulation

As a way of addressing the regulatory ambiguity surrounding NFTs, South Korea’s Financial Supervisory Service (FSS) chairman, Lee Bok-hyun, plans to engage in discussions with United States Securities and Exchange Commission Chair Gary Gensler. Scheduled for May, the talks will delve into the classification of NFTs as virtual assets, particularly in light of an impending legislation in South Korea scheduled for July this year.

With NFTs currently excluded from the country’s virtual asset laws, the meeting also aims to explore the inclusion of NFTs within the country’s blockchain and crypto regulatory framework.

US Air Force Analyst Charged In Solana-Based NFT Scam

Meanwhile, 24-year-old Air Force analyst Devin Alan Rhoden and 20-year-old Berman Jerry Nowlin Jr. face charges of conspiracy to commit wire fraud and money laundering in connection with a Solana-based NFT scam. The duo allegedly deceived investors by claiming to have three NFT collections for sale – Undead Apes, Undead Lady Apes, and Undead Tombstone – garnering over $300,000 in crypto assets from the sale.

Their scheme falsely included misrepresentations about collaboration with a reputable NFT project, which led to a significant decline in asset prices once exposed. Rhoden and Nowlin Jr. purportedly converted received crypto assets into fiat currency before law enforcement agents uncovered their fraudulent activities. If convicted, the duo could face up to five years in federal prison.