Web3 Titans Join ‘Open Metaverse Alliance’ to Fix NFT Pitfalls

In an effort to safeguard digital artists’ earnings on NFT marketplaces and boost Metaverse initiatives, the ‘Open Metaverse Alliance’ (OMA3) — notably run by Animoca Brands’ CEO, Rob Yung and UpLand’s Co-CEO, Dirk Lueth — has established a weighty working group.

The collaborative team consists of several leading blockchain, NFT, and Metaverse companies, including the famous Bored Ape Yacht Club’s Yuga Labs, Magic Eden, Alien Worlds, The Sandbox and Decentraland.

Together, these Web3 powerhouses are on a joint mission to triumph over ongoing NFT and Metaverse-related dilemmas. One of its core aims includes creating international standards for NFT marketplaces that member companies consent to uphold in a bid to bring original creator shares back into full force. 

Announcing OMA3’s defense of NFT creator royalties, including the support of @MagicEden, @yugalabs, @animocabrands, and the rest of our fantastic membership. We welcome the #NFTCommunity to join OMA3 and reinforce our efforts. @decryptmedia: https://t.co/pOyQJ81pOp

— OMA3 (@oma3dao) October 17, 2023

Persistent Creator Royalty Challenges

Creator royalties, initially designed to benefit the original artists of the digital artworks by being charged on secondary sales of NFTs, typically span from 2.5% to 10%. However, these payouts have faced mounting challenges. 

Numerous NFT marketplaces have halted the practice of creator fees, some of which draw in users by offering gamified financial incentives instead. The effectiveness of this playful approach rapidly became apparent, with Blur overtaking OpenSea as the largest NFT platform by trading volume as a consequence.

In a surprising turn of events, OpenSea, regardless of prior affirmations, revealed in August that it would no longer impose such fees for creators. In response to the marketplace’s decision, several heavyweight NFT brands took action. One of which was Yuga Labs, which revealed that it is no longer selling its virtual assets on the platform – a humungous loss for OpenSea, considering that, collectively, Yuga’s collectibles have generated more than $9 billion in trading volume. 

Safeguarding the Metaverse Vision

Participants within the OMA3 believe that stopping creator royalty enforcement endangers not only the NFT ecosystem but also the fundamental tenant of Metaverse progression. NFTs aid in crafting a connected online landscape whereby virtual assets can roam freely between these platforms to reshape digital ownership. 

According to Yung in a recent interview, at present, many NFT buyers care about short-term financial gains rather than long-term well-being. So, this is where the OMA3 comes in, attempting to protect creator royalty payments as a means to safeguard what he describes the Metaverse to be as a “utopian world”. 

On a mission to override these ongoing challenges, the alliance’s efforts demonstrate a commitment to maintaining the credibility of the NFT landscape and the broader Metaverse vision. “It’s time for creators to be in control of their assets, not platform owners,” states the OMA3 website, promoting innovation and inclusivity driven by decentralization. 

The Open Metaverse Alliance stands as a guiding light for NFT and Metaverse creators and Web3 enthusiasts alike, driven to safely and fairly construct a more thriving and equitable virtual world.

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