Royalty
Royalty fees have always been a hot topic of discussion within the NFT community. Hunt NFT is committed to finding a solution that is acceptable to all parties involved.
If royalty fees are set too high, it can result in significant transaction friction and create upward pressure on the entire NFT space. On the other hand, if royalty fees are set too low or even at zero, it can severely dampen the enthusiasm of NFT project operators and potentially jeopardize the future of the NFT ecosystem.
The current royalty rules in all NFT marketplaces
We conducted detailed research on the well-known NFT marketplaces and summarized the findings in the following table. I will now provide a detailed analysis and explanation of the content in the table.
The royalty scheme of Hunt NFT
From the very beginning of our project, we have vehemently opposed the optional royalty design proposed by Opensea and Blur. They both aim to increase market activity and their own revenue by reducing royalty fees and transaction friction. Despite Blur's claims that paying royalties can lead to more token airdrops, users cannot discern the actual difference between paying royalties and not paying them. Users have no reason to pay high royalties for vague airdrops. In reality, real users will try to minimize royalty payments, which poses a significant blow to NFT project operators.
NFTs have reached a point where they are becoming less appealing to the average cryptocurrency user. Every practitioner in the NFT industry should ask themselves a question: Why would users spend significant amounts of money on assets with lower liquidity, higher transaction friction, and the risk of project rug, all for the sake of owning a digital image? If we want the NFT market to improve, every individual in the market should make a contribution; otherwise, we will collectively bring about its demise.
Hunt NFT is striving to address these issues. On one hand, we have designed a raffle system for trading NFTs, which effectively resolves liquidity problems. On the other hand, we have implemented an innovative royalty scheme. We allocate 25% of our protocol's revenue towards paying royalties to project operators, while another 25% is distributed to NFT holders. We believe this is a reasonable and sustainable long-term royalty design that benefits the entire NFT ecosystem.
Go and spread the word to your friends! At Hunt NFT, every holder will receive dividend payouts from royalties. The specific dividend distribution schedule will be announced clearly on Discord. Don't forget to join our Discord community!
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