To Increase Royalty Fees From 2.5% to 5%

Collection royalties have always been a touchy subject. Recently we’ve seen marketplaces get a lot of pushback from trying to do away with royalties, but ultimately decide to stick with creators and continue enforcing them.

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A new competitor (Blur) took over a major share of NFT volume. As a way to keep up OpenSea was going to do away with creator fees, but maintain their marketplace fee. Theoretically, this would drive NFT prices down as sellers didn’t have to account for the creator fees in order to make profit, and as a result would drive volume up.

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But Blur continues to dominate NFT marketplace volume. This is an indicator that the NFT community at large would rather pay creators than marketplace fees.

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What does this mean for BGANs?

Historically BGAN sellers have already been paying a 5% fee through OpenSea—only half of which goes to the DAO. If 7.5% on OpenSea is too much to ask for, then sellers can continue paying 5% on other marketplaces; which, will all go to the DAO.

Increasing the treasury will allow for better marketing campaigns, fund growth initiatives and ecosystem building. And allow the DAO to continue public services to the community like providing liquidity while also reducing sell pressure on earned LP rewards.

Concerns:

There are concerns that increasing the royalty fees will drive away volume, but volume would have to drop by more than 50% in order to make this increase a detriment to the DAO. There are also methods for trading NFTs without enforcing fees. We recently saw an 11 ETH sale that generated 0 revenue for the DAO, but is still beneficial to the collection.