Web3 creators at higher a loss for royalties than anticipated: data
New data from research by eBit Labs and LiveArt marketplace reveals that the previous estimates of creator royalty losses, which were around $35 million, may be much higher. The nonfungible token (NFT) space has been a proven gateway for helping users take their first steps into the Web3 space. This is particularly true when it comes to artists and creators using Web3 tools to enhance their work. However, new data from eBit Labs and LiveArt marketplace reveals that the loss of creator royalties over the past year in the NFT space could be higher than estimated. According to the data, after the emergence of the Blur marketplace in October 2022, two of the leading NFT collections - Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) - experienced shortcomings in royalties of around $20 million alone The new data involving BAYC and MAYC shortcomings then points to previous estimates of $35 million in royalty shortcomings likely being too small. Figure 1: Fees paid vs shortfall ...