X2Y2 NFT Buyers Can Now Choose their Royalty Contribution Amount
Buyers on X2Y2, an NFT marketplace, may now select the amount of royalties they want to contribute to projects. According to their Twitter post, dominant aggregators intend to provide similar functionality in the imminent future. As a result, X2Y2 wants to ensure they are prepared and monitor industry trends.
A Hit or a Miss?
X2Y2 is a promising new NFT marketplace launched in February 2022. It has been trying to compete against the likes of Opensea, and its efforts are starting to show results. One main factor contributing to the platform’s growth is its zero-trading fees marketing strategy.
On the NFT Marketplace, X2Y2, users can now choose the amount of royalty they would like to contribute to various projects. However, this will not affect the seller’s revenue. The royalty rate is reportedly 100%, 50%, or 0%.
The buyer can now directly receive royalties from the seller, which is different from the traditional sales method. In addition, they can also direct royalties from the seller back to the buyer as a ‘refund’ which allows the buyer a cheaper entry. As Franklin, the 6th largest BAYC holder, puts it, “For example, if you want to buy my floor ape, listed at 76.2919 ETH on X2Y2, you can direct the 2.5% royalties back to yourself instead of to Yuga Labs, and so this ape would only cost you about 74.39 ETH.”
This feature has caused controversy in the community, which is unsuitable for NFT creators. Choko, a collector on the platform, says, “We have bought or traded on this platform, thankfully. Not supporting any platform that takes away from creators. Creators are this space’s very life force; to give collectors more power is wrong and hopefully will fail long term.”
Others, such as Prit.eth, founder of ApolloAccessNFT, mentioned that they like this update from x2y2 as they continue to adapt and make quick changes and improvements to their marketplace. He adds, “Opensea is slowly losing market share, and I love to see that considering how big they are and how slow they are to make improvements.”
Artists Might Adjust Their NFT Prices
Sudoswap announced two weeks ago that it does not support royalty fees. The move raised controversy, with one artist saying they would not be phased out if the entire ecosystem adopted a royalty-free trading system. They also noted that they had sold several items they forgot to set royalties on, and they aren’t upset by the re-sale of the same ones.
According to Derek Edward Schloss, the co-founder of FlamingoDAO, no artists or creators have opted into Sudoswap yet. He noted that most of the volume comes from NFT owners who have created their pools, bypassing the artist and creator entirely.
According to Jake Stott, the CEO of web3 agency, if Sudoswap and its royalty-free trading continue to grow, it’s likely that artists will have to adjust their prices to make more money from their work. Artists might focus more on moving volume instead of pricing their work higher.
He also noted that major brands such as Coca-Cola and the NBA Top Shots would be more likely to support the use of royalty-free marketplaces. The reason is that NFTs may be more of a community- and brand-building tool for companies than a direct source of income; they may be more willing to forego royalties than artists.