DeGods, the most successful Solana project up to today, is now updating all of its nonfungible tokens (NFTs) to 0% royalties. Founder Frank DeGods published the announcement through Twitter, making waves among NFT collectors. That controversial decision also raised questions about what NFT royalties are and their importance in the NFT industry.
The NFT project is now going for 0% royalties on all of its NFT collections, including t00bs and y00ts.
Why Did Frank DeGods Settle For 0% Royalties?
On October 9, the leading Solana-based project DeGods made an incredible announcement. From October 10, all of the team’s nonfungible tokens will go for 0% royalties. In comparison, the DeGods collection used to feature 9.99% royalties. Notably, the change has already been applied to the DeGods NFTs.
Nevertheless, t00bs and y00ts will also have all their royalties updated soon, as highlighted by Frank DeGods. Notably, creator Frank DeGods did not provide any exhaustive explanations either. He wrote in a tweet:
“We believe this is the best decision for our business at this time. It’s about time we take a new approach.”
But is this strategy the right one? That is what the NFT industry is debating currently:
Our next experiment. pic.twitter.com/VmoDfXvcyu
— DeGods (@DeGodsNFT) October 9, 2022
Frank DeGods made his announcement through Twitter and left many people in the NFT community talking.
How Did The Community React?
Interestingly, DeGod’s decision to go for 0% royalties is highly controversial. Most of the NFT community members are now worried about the project’s financial future. Some think that the change may lower the project’s value in the long term.
Collector @xX1TopShotxx said in a tweet:
“You don’t see Apple lowering the cost of iPhones for a reason, this is a digital asset market and I want my digital asset to have as much value driven to it as possible. I want the creators to have billions because that value over time will flow to the holders.”
In the meantime, some other users just believe DeGods has already made enough money and their decision is morally right. In general, this project is the most successful Solana project, amassing more than $6 million in secondary sales alone.
In that context, there is still a lot of interest in the DeGods project – with or without royalties. The question comes: why is everybody still debating about this change so extensively?
DeGods is undoubtedly one of the most popular NFT projects of the year.
Why Do NFT Royalties Matter A Lot?
Essentially, NFT royalties are the payment NFT developers get each time someone sells their digital assets on any marketplace. Royalties are available in every domain, but with nonfungible tokens, they are normally a percent of every NFT sale. In that case, every developer gets to decide the royalty he has to get for the project.
In most cases, royalties range between 5-10%, although it is not a rule. For instance, DeGods NFTs had a 9.99% royalty before their latest update. In conclusion, only time will tell the impact of the latest decision made on the DeGods NFT collection.
