December 12, 2022
By Anjali Kochhar
Popular non-fungible token (NFT) marketplace X2Y2 has reversed its decision to make creator royalties optional. The original move inspired several other marketplaces to follow suit.
X2Y2 said Friday on Twitter that it will now enforce creator royalties on all of the collections sold on its platform after being one of the first to drop its royalty requirements.
Its “Flexible Royalties” model sparked pushback from some NFT creators and marketplaces about ensuring that NFT creators are compensated fairly for their works.
X2Y2 referenced leading NFT marketplace OpenSea’s on-chain royalty enforcing tool, which will blacklist collections from being resold on marketplaces that don’t implement royalties. It said that most new collections have opted for this model.
“We used to believe the best way to handle royalties is to give both parties, creators and traders, the right to choose,” the marketplace wrote on Twitter.
“Putting belief aside, if there was anything self-evident in crypto, it’s the ‘code.”
In August, X2Y2 said it would make royalties optional, allowing buyers to elect how much they contribute to creators.
According to a tweet from Twitter user Punk9059, about 30% of NFT trades since August have been royalty-free.
Last week, OpenSea pushed back against optional royalties, sticking to its decision to enforce creator royalties across its platform.
“Proud to stand with you – and the many brilliant creators in our community – on this critical measure,” said OpenSea in response to X2Y2’s announcement on Twitter.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
