LooksRare Removes Creator Royalties in Response to Competition

LooksRare is the latest NFT marketplace to move to zero royalties and instead will be sharing protocol fees with creators.

LooksRare Removes Creator Royalties in Response to Competition

The validity of NFT royalties has come up for debate recently. A few weeks ago the DeGods NFT project announced that they will be opting for zero royalties on their NFTs. This sparked a huge Twitter debate on what the impact of this move could be for creators. Not long after, Magic Eden also announced zero royalties. Now it seems that the competition is heating up and the debate is still raging as we are starting to see more marketplaces responding to this move. The latest news comes from LooksRare, the young NFT marketplace who recently announced that they too will be reducing their royalties to zero with immediate effect.

On October 27 the announcement was made on Twitter stating “...#LooksRare will no longer support creator royalties by default, and instead, share 25% of the LooksRare Protocol fee with creators/collection owners.” While the main concern for those who are against this move is that creators are not compensated fairly, LooksRare has confirmed that instead of royalty fees they will be distributing a quarter of their platform fees to creators and collection owners, and will continue to allow buyers to opt-in to royalties should they wish to do so.

While this could have negative impacts on creators and their motivation to continue creating, it could also potentially show positive effects by drawing more buyers into the market, as investing in NFTs becomes more affordable and inviting. How platforms and marketplaces are making it more attractive for buyers will likely continue to develop in the near future and we will be keeping track of new developments in NFT royalties.