The Open Metaverse Alliance for Web3 (OMA3), a consortium consisting of leading Web3 companies, has brought together influential figures within the non-fungible token (NFT) community to discuss how to empower and standardize creator royalties.
The group includes notable players — such as Magic Eden, Yuga Labs, and Animoca Brands, among others.
NFT royalties — which are the money that creators receive each time their digital collectibles change hands in the secondary market — usually fall in the 2.5% to 10% range. However, in many instances, artists have little say in how these royalties are handled, as the marketplaces hold the reins.
Frequently, marketplaces do not ensure that these royalties are honored. This has been the case with several major marketplaces that have either decreased or entirely eliminated royalties. For example, OpenSea and Magic Eden have shifted to optional royalties, allowing NFT owners to decide whether they want to pay creators.
The move towards optional or zero earnings from the resale of artists’ works may discourage creators, who may view it as unprofitable. This, in turn, could make them consider going back to Web2.
The Alliance’s working group on creator earnings is committed to addressing these concerns and finding a middle ground. Their mission will be to explore and decide on the best way to safeguard creators’ royalties across the entire market — possibly by establishing universal standards for NFT marketplaces.
Launched in 2022, OMA3 is a consortium of Web3 platform creators that aims to ensure interoperability and standardization for enhanced security within the virtual world.
Over time, OMA3 has set up various working groups, each focused on exploring and addressing the unique challenges and opportunities presented by different aspects of Web3, including asset transfers, portaling and mapping, and various matters related to NFTs.