NFTs and Effective Royalty Rate

Why
"Zero Royalties" pose a
threat to Web3 and
Creators?
 Zero creator royalty marketplaces
create a systemic issue for creators.

It is important to understand what the

“effective royalty” is for top projects in
the space.
 But first let's
speak about the
implications of
zero royalties.
4 crucial points below
 1. “Zero royalties” policies have
been destructive.

More money is being diverted away

from creators to avoid paying them
royalties.
 2. The increase in market share
on “Zero royalties” marketplaces
has resulted in the significant
loss of royalty payments to
creators.
 3. “Zero royalties”
marketplaces are paying
creators virtually nothing–or
close to $0.
4. OpenSea is the last hope for stopping
the race to the bottom.

OpenSea is fighting for an uneven battle,

collecting 91 percent of all creator
royalties in the entire market while
having less than 50 percent of the market
of NFT sales.
Here you see the Average Royalty % from
Major Marketplaces (November)
ETH dominates at OpenSea the last quarter
But the declining trend is real...
(October-November data)
These are millions
of $$$
that are not being
distributed to
creators!
 So, what's next?
The time has come:

Let's now talk about

Effective Royalty Rate
 “Effective Royalty Rate” is
calculated as the total royalties
earned across all marketplaces,
divided by the total volume
across all marketplaces.

It is shown in percentage (%)

 Below you'll some graphs
that show the
Effective Royalty Rate
from major NFT collections
The downfall is apparent...📉

Data shown are from 1st of July till today (6 months)

The next slides will be fun... be ready

1.Bored Ape Yacht Club
2.Mutant Ape Yacht Club
3.Moonbirds
4.Azuki
5.Clone-X(RTFKT)
6.Renga
7.DeadFellaz
Effective Royalty Rate in % - 6 month period fluctuation
Start of July 2022 Now in Decemeber 2022

BAYC

MAYC

Moonbirds

Azuki

Clone-X(RTFTK)

Renga

DeadFellaz

0% 1% 2% 3% 4% 5%
The numbers from above for your reference

July 2022 ERR% December 2022 ERR%

BAYC 2.23% 0.88%

MAYC 2.41% 0.89%

Moonbirds 4.98% 2.33%

Azuki 4.37% 1.26%

Clone-X (RTFTK) 1.17% 1.84%

Renga 4.87% 1.56%

DeadFellaz 5% 4.16%

ETH and WETH volumes have been used in the calculations across major NFT marketplaces