In Brief:
- Pak said that NFTs should offer 100% royalties at the beginning .
- Pak also said that the royalty percentage one gets depends on the “collector”.
It was just today when Pak said through a tweet that NFTs should have dynamic royalties. He proposed that royalty may start at 100% but may decrease gradually with time.
As per Pak, “collector” is the one who can justify what percentage of royalty one would receive. He said that if the ‘collector’ doesn’t take the royalty, then the work would be absolutely free and vice versa.
He further mentioned that although by default royalties should have been 50% but in general in the commercial industry, it’s just 10% of the profit that a creator receives and the rest 90% of it is taken up by the industry. So at the end the creator gets just the percentage that could be considered as “breadcrumbs” which doesn’t even count.
He gave a situation about what would happen if he takes a step back in NFT creation since he is one of the best in the industry like his most recent success on “merge” NFTs sale that was sold for $91.8 million in just 48 hours and even made a record as the largest sale by any living artist. Although he clarified himself that now it’s just about creating beautiful arts and not just the money.
In continuation to this he further explained that if someone is being honest and appreciates the art one could see an immense growth but if someone is just behind the profit then they may see a hype for once and may never see any more growth in future.
He also gave a set of examples that explained the set of royalties. There are a few that change over time, then there comes that just focus from a profit perspective. And then finally there comes a category where it depends on the “collector” and the one who has created it.
Pak did explain explicitly about what is the distinct difference between a “buyer” and a “seller.” He did explain that according to him it’s more suitable to address a “buyer” as a “creator” whereas a “seller” as a “collector.”
