DeGods, the most successful Solana project to date, is updating all of its NFTs to 0% royalties! Founder Frank DeGods released the statement via Twitter, making waves among NFT collectors. This controversial decision also raised questions about what NFT royalties really are and their importance in the NFT space.
Before we get into that, though, let’s answer the key question of the day:
Why did Frank DeGods opt for 0% royalties?
On October 9th, the leading Solana-based project DeGods made a shocking announcement. Starting today, all of the team’s NFTs are taking 0% royalties. By comparison, the DeGods collection used to feature 9.99% royalties. Furthermore, Frank DeGods stated that y00ts and t00bs will also have their royalties updated soon.
Interestingly, despite this announcement, creator Frank DeGods did not offer many explanations for this royalties change. “We believe this is the best decision for our business at this time,” he wrote in a tweet. “It’s about time we take a new approach.”
But is this approach the right one? That’s exactly what the NFT community is debating right now – here’s their takeaway:
How did the NFT community react?
Of course, DeGods’ decision to opt for 0% royalties is controversial. Many NFT community members are worried about the project’s financial future. In fact, some believe the change might lower the project’s value over time.
“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,” said collector @xX1TopShotxx in a tweet.
Meanwhile, other users simply think DeGods already “made enough money” and their decision is morally right. After all, DeGods is the most successful Solana project, amassing over $6 million in secondary sales alone.
All in all, there’s still plenty of interest in the DeGods project – with or without royalties. So why is everybody still debating this change so intensely?
Why do NFT royalties matter so much?
In essence, NFT royalties are the payment NFT creators get every time somebody sells their digital asset on a marketplace. Royalties exist in every domain, but with NFTs, they’re basically a percent of each NFT sale. In this case, each creator gets to decide the royalty they receive for the project.
Most of the time, royalties range between 5-10%, although that is not a rule. For example, DeGods NFTs had a 9.99% royalty before their latest update. To conclude, only time will tell the impact of this decision on the DeGods NFT collection. Meanwhile, you can learn more about their latest drop, y00ts NFTs, in our in-depth post!