An NFT marketplace set 0% royalties, sparking concerns about the future of artist compensation
Sudoswap, a decentralized marketplace for non-fungible tokens (NFTs), sparked controversy with its automated market maker (AMM), with chatter about the potential consequences of its fee structure reaching fever pitch over the weekend. The AMM allows people to buy and sell on any market automatically without individuals having to wait for interested buyers or sellers.
Sudoswap’s removal of artist royalties made sense to some who support economic leanness above all else, while others felt this could set a race to the bottom, where artists can lose a valuable source of income. Despite their prevalence in music and publishing industries, royalties are not a set fixture within the NFT space. They’re a “social concept,” The Block researcher Eden Au said, that are not enforced at a smart contract level. Thus, NFT royalties must be enforced on a marketplace level.
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