The Open Metaverse Alliance for Web3 (OMA3), a consortium of key players in the blockchain, NFT, and metaverse sectors, announced the formation of a specialized working group. They aim to explore methods for standardizing and preserving creator royalties within NFT marketplaces.
The Importance of Creator Royalties
Creator royalties, which usually range between 2.5% and 10%, are added to the cost of secondary sales of NFTs. These fees are directed straight to the pockets of the original creators. Despite being a long-standing tenet in the crypto ecosystem that benefits artists, enforcing these royalties faces increasing challenges.
For instance, OpenSea, once a supporter of creator royalties, announced last August that it would cease enforcing them. This decision led NFT brands like Yuga Labs, responsible for over $9 billion in trading volume, to pull their assets from the platform.
The Newly Formed Working Group
The newly formed working group will include notable brands in the crypto space, such as Yuga Labs, creators of the Bored Ape Yacht Club NFT collection, and Magic Eden, a multi-chain NFT marketplace originating on Solana.
OMA3’s members believe that the lack of enforcement for creator royalties risks destabilizing the NFT market and undermines the fundamental principles of metaverse development. NFTs are crucial in creating a unified online ecosystem where digital assets can move freely between platforms.
OMA3, also known as the Open Metaverse Alliance, is a collective that includes top metaverse-centric firms like The Sandbox, Animoca Brands, Alien Worlds, Dapper Labs, Decentraland, MetaMetaverse, Space, SuperWorld, Upland, among others. The alliance aims to promote interoperability across platforms for virtual land, digital assets, concepts, and services while ensuring transparency for all involved communities.
Last July, OMA3, based in Zug, Switzerland, announced the Inter-World Portaling System (IWPS) project. The project aims to address challenges in navigating the metaverse. The group is committed to developing standards and infrastructure to create user-owned and controlled virtual worlds, aligning with its broader mission to shape the metaverse in a way that respects digital ownership.