Solana-based fine art NFT marketplace Exchange.Art has launched what it calls a “Royalties Protection Standard” that will enforce creator royalties on secondary sales of NFTs that originate on its platform, the company said Wednesday.
Alex Fleseriu, CEO of Exchange Art, told CoinDesk that because the platform was originally built for artists “exploited” by the lack of set royalties in the fine art world, it remains motivated to help artists more fairly earn their share in Web3.
“It is an opt-in basis type of program that essentially prevents creators' work from being ‘forced-listed’ on unintended marketplaces, where royalties are simply not honored,” said Fleseriu. “We are responsible for building tools that creators need to make a living.”
Through Exchange.Art’s “allow list” feature, creators will be able to choose which secondary platforms their tokens can be listed on, allowing them to earn guaranteed royalties as their work changes hands in perpetuity.
In August, NFT marketplace X2Y2 dropped its royalty requirements, allowing users to contribute to artists at their discretion. In October, Solana-based platform Magic Eden followed with an optional royalties structure, and most recently, LooksRare stopped enforcing royalties, instead sharing a 25% protocol fee between the platform and artists.
While some platforms are doing away with royalty requirements, others are modifying their structures to support creators. On Tuesday, Stepn parent company Find Satoshi Lab released an NFT marketplace that aims to protect artists by enforcing royalty percentages between 0.5% and 10%.
“We want to shift [the space] from value extraction to value creation, because there is room for this market to grow enormously…more and more creators are being onboarding to Web3 every single minute, but we have to treat them with respect,” explained Fleseriu.
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