Yuga Labs Ceases Collaboration with NFT Market that Doesn’t Support Royalties for Creators

Yuga Labs Ceases Collaboration with NFT Market that Doesn't Support Royalties for Creators

Yuga Labs Ceases Collaboration with NFT Market that Doesn't Support Royalties for Creators

Yuga Labs, a professional NFT creation team, announced today that the multi-chain NFT marketplace, Magic Eden, will launch its Ethereum market on Tuesday (27th). At the same time, Yuga Labs announced that it will cease support for market platforms that do not support royalties for all creators.

Yuga Labs, on the X platform, stated that they have released a collection list, and the listed collections will only be traded in markets that protect royalty payments in the future. This includes the Otherside series and 10KTF series, which are related to the metaverse platform currently being developed by the company, as well as the recently acquired Moonbirds NFT series.

Currently, this decision may not have a significant impact economically, as it does not involve their two largest NFT series in terms of trading volume. Steven Zheng, a research analyst at The Block Research, stated that there are NFT markets with contractual obligations to enforce royalties.

This move comes more than a year after the NFT marketplace, Blur, successfully captured the majority of NFT trading volume. Their success was largely due to the market offering generous incentives and introducing a significantly reduced royalty structure. OpenSea, which had been in a leading position, later followed suit to compete with Blur by lowering royalties.

The lower royalty structure, coupled with the decline in NFT trading volume, led to a significant decline in Yuga Labs’ revenue last year. In November last year, Magic Eden announced its collaboration with Yuga Labs to launch the first Ethereum NFT market with contractual obligations to enforce creator royalties.

In a statement released today, Yuga Labs stated that their latest PFP (Profile Picture) NFT series, The Grailed, created by the 10KTF team, will be showcased for the first time on the Magic Eden market.

Yuga Labs’ Vice President of Communications, Louise Conroy, revealed in an interview with “nft now” that the collection will be featured on the Magic Eden market.