The world of non-fungible tokens (NFTs) is no stranger to controversy, and Truth Labs, the company behind the infamous ‘Goblintown’ collection, has once again found itself at the center of a heated debate. This time, the company has taken a bold stand for creator royalties by altering the artwork on its flagship NFT project.
The move sent shockwaves through the Goblintown community, with the artwork being changed to a single-fingered salute aimed at those circumventing creator royalties. The accompanying statement was equally provocative, declaring that
“Fuck royalties. Fuck supporting building and creatives. Flipping is the heart of what makes Web3 special. Honor the flipper, fuck the community. Long live the slow rug.”
We are upgrading the contracts for all ERC-721’s in the Truth ecosystem. pic.twitter.com/WJufX5CNTh
— Truth Labs (@truth) April 11, 2023
This statement reflects a broader sentiment among NFT creators, who feel that they are losing out on much-needed revenue. Creator royalties are fees that are attached to every secondary sale and go directly to a designated wallet, usually that of the project owner. However, many NFT marketplaces have abandoned this model in a bid to attract more traders, introducing bare minimum or optional royalties instead.
Truth Labs is taking active steps to protect its creator royalties model. It recently announced that it had disabled the bidding, listing, and trading of its NFTs on Blur and OpenSea while it upgrades to a new enforced royalties smart contract. This move is intended to ensure that creators receive the royalties that they are due, and to prevent circumvention of the royalty model.
As part of its new plan, Truth Labs will migrate its NFTs to a smart contract that ensures the complete payment of creator royalties on-chain. The platform automatically airdropped new versions of the impacted NFTs to holders on April 16 to facilitate this migration. This move is expected to help protect the rights of creators and ensure that they receive the revenue that they are entitled to.
However, not all NFT holders are happy with the changes made by Truth Labs. Many see the modifications as evidence of centralized decision-making, and believe that holders should have been given the chance to weigh in on the decision. As Rahim Mahtab, founder of ArtsDAO, notes, “Not giving your holders the chance to [make] this decision goes against the ethos of this space.”
In conclusion, the NFT market is rapidly evolving, and debates over creator royalties are likely to continue. However, with companies like Truth Labs taking bold steps to protect the rights of creators and ensure that they are fairly compensated for their work, there is hope that the NFT market can become a more equitable and sustainable space for all involved.