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If I'm understanding what you're referring to, this is one of the worst part of NFTs. How is it any different than me having to pay Ford a royalty when I sell
by spiderice 5y ago
If I'm understanding what you're referring to, this is one of the worst part of NFTs. How is it any different than me having to pay Ford a royalty when I sell my used car on Craigslist? It's such a toxic feature for consumers. Sure, when used correctly it could be cool to help creators or whatever. It will absolutely be abused. It already is being abused by scammers who create NFTs that can't be sold.
- Dwolb 5y agoIt can be abused, but it allows the creator or developer to align incentives in different ways. eg if the royalty goes toward a DAO, maybe that DAO’s charter is to grow awareness for the NFT project. Or the rewards could accrue toward a staked project token that all community members hold, or fees could go back to the creator to fund development for next gen. I don’t know the best use, but my point is because someone programmed royalties, there’s now another dimension of configuration for NFT projects.