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Royalties Introduced by Decentraland

www.thecoinrepublic.com 07 January 2022 01:24, UTC
Reading time: ~3 m

  • Decentraland is a 3-D game where the users are allowed to trade the virtual properties through cryptocurrency MANA.
  • As of now, any transaction associated with the NFTs provides 2.5% of the commission to the Decentraland DAO, whether it is done for primary or Secondary markets.
  • At the time of writing, MANA, the indigenous token of Decentraland, was bearish by 11.15% and trending at the price of $2.85.

Rejoice Creators!

The royalties are out, and it’s the time for creators to get what they actually deserve.

Hitherto, when a sale is made by the wearable creator, in the new issues market, the creators were receiving the price that was listed, minus 2.5% of the commission, which directly goes to the DAO of Decentraland. However, if the sales are happening in the aftermarket, the holder of the product, who may or may not be the individual who’s created the item, will receive the price of the sales, and guess what? 2.5% commission will be going to the Decentraland DAO. In short, wherever the sales are happening, Decentraland DAO will be receiving the commission and keeps making profits.

However, this will not be the case from now on, as the royalties are introduced, which will vanish the part where the Decentraland DAO was enjoying the creators’ rights, and the creators will be getting it back with them.

As the royalties will be implemented in the marketplace of Decentraland, the DAO will have the right to receive the commission through the primary market only, and the sales happening in the secondary market will be providing the commission to the wearables’ creators. So Rejoice, Creators!

Existing as well as the latest collection creators on Polygon would be capable of setting the address of beneficiary per item in the management tool for collection, be it a third party or themselves. In case the item is traded on multiple occasions, it is for the creator to decide who will be getting the perks of the trade.

Deployment of the latest marketplace smart contract has been done to enable the dispersion of royalties. As of this deployment, listings of all the wearables will be generated in the contract. As mentioned above, the royalties can be received by the creator or anyone else who is the beneficiary chosen by the original creator. However, the royalties are not ex post facto, which means that the wearables that were listed in the past, before the royalties’ launch, are not qualified to receive them.

Creators associated with the Decentraland universe can now relax as the royalties will do the right thing, which would have been done already. This will support the creators more regarding their work, and new creators might get attracted through this initiative.

As of this writing, the total market capitalization of the Decentraland token MANA was $5.1 Billion and was bearish by 11.5% in 24 hours, with a market price of $2.85.

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