Royalties Drive the Growth of NFT Economy

Royalties Drive the Growth of NFT Economy

According to reports, Yat Siu, co founder of Animoca Brands, said, “Royalties have helped drive the growth of the NFT economy, and all these innovations have occurred because royalties can be collected.”

Animoca Co founder: Royalties make it possible for NFT projects to flourish

Analysis based on this information:


The statement of Yat Siu regarding the contribution of royalties in the progress of the NFT economy can be interpreted as significant. It elucidates how the royalty system can drive innovation and foster the growth of this emerging market.

Royalties incentivize creators to produce quality content as they receive a percentage of earnings every time their works are sold. This also benefits buyers since it ensures that the creators have a vested interest in creating content that would keep the market thriving. Thus, with the royalty system, creators are not just motivated to create for short term gains, but for the long-term sustainability of their products.

In addition, royalties have enabled the emergence of digital asset marketplaces where creators can list and sell their works in verifiable ways. The creation of digitized assets provides a platform for creators to market their works globally and generate revenues based on the popularity of their creations. With the increased accessibility of digital art and other NFT products, more people are being exposed to these assets and are more likely to invest in their purchase.

The NFT market is continually evolving, and Siu’s statement highlights how royalties contribute to the overall growth of this economy. Since royalties incentivize creators to produce quality content, their works are more widely circulated and are more likely to be appreciated by potential buyers. This then leads to increased demand for their works, and ultimately price appreciation, which benefits both the creators and buyers.

In conclusion, through the implementation of a royalty system, creators are incentivized to produce high-quality NFT products that contribute to the growth of the NFT economy. The value of these products is boosted by recognition and trading among investors. As a result, the market has seen significant growth in recent years due to the implementation of royalties. Thus, royalties drive the growth of the NFT economy, and this phenomenon will continue as more creators enter the market and buyers seek to invest in their works.

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