Open Metaverse Alliance (OMA3) Forms Working Group to Protect NFT Artist Earnings
The Open Metaverse Alliance (OMA3), led by Animoca Brands’ CEO, Rob Yung, and UpLand’s Co-CEO, Dirk Lueth, has taken a significant step in safeguarding digital artists’ earnings on NFT (Non-Fungible Token) marketplaces and advancing Metaverse initiatives. This collaborative effort comprises a robust team of key players in the blockchain, NFT, and Metaverse industries, including Yuga Labs of Bored Ape Yacht Club fame, Magic Eden, Alien Worlds, The Sandbox, and Decentraland. Together, they aim to address ongoing challenges in the NFT and Metaverse space and establish international standards for NFT marketplaces, ensuring creator royalties are upheld.
The Mission to Preserve Creator Royalties
A core objective of OMA3 is to create international standards for NFT marketplaces, with member companies committing to maintaining creator royalties. These royalties, originally intended to benefit the original artists of digital artworks through secondary sales of NFTs, typically range from 2.5% to 10%. However, various NFT marketplaces have discontinued this practice, instead luring users with gamified financial incentives. This approach has proven effective, as Blur surpassed OpenSea as the largest NFT platform by trading volume.
In a surprising move, OpenSea, despite previous assurances, announced in August that it would no longer enforce creator fees. In response to this decision, prominent NFT brands, such as Yuga Labs, ceased selling their virtual assets on OpenSea. Yuga’s collectibles had collectively generated over $9 billion in trading volume, making their departure a significant blow to OpenSea.
Safeguarding the NFT Ecosystem and the Metaverse
OMA3 members firmly believe that discontinuing creator royalty enforcement not only jeopardizes the NFT ecosystem but also undermines the core principles of Metaverse development. NFTs play a pivotal role in shaping a connected online environment where virtual assets can freely move between platforms, reshaping digital ownership.
In a recent interview, Rob Yung emphasized that many NFT buyers are primarily interested in short-term financial gains rather than the long-term well-being of the ecosystem. OMA3’s mission is to protect creator royalty payments, viewing the Metaverse as a “utopian world” that requires preservation.
By taking on these ongoing challenges, OMA3 demonstrates its commitment to maintaining the credibility of the NFT landscape and advancing the broader vision of the Metaverse. The alliance advocates for creators to have control over their assets rather than platform owners, promoting innovation and inclusivity through decentralization.
The Open Metaverse Alliance (OMA3) serves as a guiding force for NFT and Metaverse creators and enthusiasts within the Web3 community. Their goal is to create a thriving and equitable virtual world while ensuring that digital artists are fairly compensated for their contributions. In a landscape that is continually evolving, OMA3’s commitment to preserving creator royalties and promoting a more transparent and decentralized approach highlights their dedication to a vision of the Metaverse that benefits all participants.