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The Role of Royalties in the Growth of NFT Economy

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According to reports, Yat Siu, co founder of Animoca Brands, said, \”Royalties have helped drive the growth of the NFT economy, and all these innovations have oc

The Role of Royalties in the Growth of NFT Economy

According to reports, Yat Siu, co founder of Animoca Brands, said, “Royalties have helped drive the growth of the NFT economy, and all these innovations have occurred because royalties can be collected.”

Animoca Co founder: Royalties make it possible for NFT projects to flourish

Analysis based on this information:


The statement by Yat Siu, co-founder of Animoca Brands, highlights the significance of royalties in driving the growth of the NFT (Non-Fungible Token) economy. NFTs are digital assets that use blockchain technology to verify their uniqueness and ownership, and they have become increasingly popular in the art, music, and gaming industries. The invention of royalties for NFTs has led to a new era of creators and collectors who can sell, buy, and trade unique digital assets with ease.

Royalties have been vital to the growth of the NFT economy for two main reasons. Firstly, they create a revenue stream for creators even after an NFT has been sold. This means that creators can earn money every time their NFT is resold, providing a sustainable income and incentivizing them to continue to produce high-quality unique digital assets. This has resulted in an increase in NFT production, as creators can now earn a living from their digital art, music, or other types of unique digital assets.

Secondly, royalties have driven innovation in the NFT industry. The ability to collect royalties on an NFT has opened up a range of new possibilities for creators and collectors alike. For example, creators can now offer unlockable content or features that can be accessed only after an NFT has been sold. This creates new revenue streams for creators and enhances the value of their NFTs, which can lead to higher prices and increased demand. Collectors, on the other hand, can now earn money by reselling their NFTs, providing an incentive to collect and trade unique digital assets.

Overall, the impact of royalties on the NFT economy has been significant. They have created a revenue stream for creators, driven new innovation, and incentivized collectors to buy and sell unique digital assets. As the NFT economy continues to grow, it is likely that royalties will remain a critical component of this emerging market.

In conclusion, the role of royalties in the growth of the NFT economy cannot be overemphasized, and it’s evident that all the innovations observed in the industry are due to the introduction of royalties in NFTs. Creators can have a steady income flow, there’s a new revenue stream for creators and collectors, and reselling NFTs is more profitable than ever. Therefore, it is safe to say that royalties have facilitated the growth of NFTs, and more developments are expected in the future.

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