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

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.”

Interpretation of this information:

The rise of non-fungible tokens (NFTs) has been unprecedented, with the crypto collectibles experiencing explosive growth in the last year. With the NFT market growing rapidly, there have been numerous innovations taking place to drive further growth. According to reports, Yat Siu, co-founder of Animoca Brands, has attributed much of this growth to the presence of royalties. In a statement, he said that “royalties have helped drive the growth of the NFT economy, and all these innovations have occurred because royalties can be collected.”

Royalties are payments made to the original creator of an asset for each subsequent sale or usage. When it comes to NFTs, the original creator can set the terms for royalties on the initial sale, enabling them to earn money every time the asset is sold afterward. This means that creators have a stake in the continued success of their creations, motivating them to produce more and better quality content.

Moreover, royalties also provide a way for investors and collectors to see a return on their investments. With the possibility of royalties, there is an added incentive to buy and hold NFTs, as they could potentially increase in value over time. This creates a cycle of investment and innovation in the NFT market, with everyone from creators to investors motivated to participate and contribute to the economy.

In conclusion, the importance of royalties in driving the growth of the NFT economy cannot be overstated. They provide creators with a way to earn ongoing revenue, which motivates them to continue producing high-quality content. Additionally, the possibility of royalties encourages investors and collectors to buy and hold NFTs, contributing to the economy’s overall growth. As the NFT market continues to evolve, it will be interesting to see what other innovations arise to support this exciting new form of digital asset.