X2Y2 Backs Down From Optional Royalties Decision, to Enforce Creator Royalties
Major non-fungible token (NFT) marketplace X2Y2 has backed down from its decision to make creator royalties optional.
In a recent tweet, the platform, which launched earlier this year and saw significant trading activity over the summer, announced that it will enforce creator-set royalties on all NFT collections.
Its model, called “Flexible Royalties,” sparked pushback from some NFT creators and marketplaces about ensuring that NFT creators are compensated fairly for their works.
X2Y2 was one of the very first platforms to embrace the optional royalties model, a move that inspired other NFT platforms, including Magic Eden, Solana’s top NFT marketplace, to do so.
At one point, even OpenSea, the largest NFT marketpace in the world, considered creating royalties optional. However, following an intense creator pushback, the marketplace had to back down, siding with creators in the matter of royalties.
OpenSea even announced the rollout of a system that would let creators of new projects blacklist certain marketplaces that do not require traders to pay royalties. That system takes effect on November 8.
In the tweet, X2Y2 referenced OpenSea’s on-chain royalty enforcing tool, adding that most new collections have opted for this model.
“We used to believe the best way to handle royalties is to give both parties, creators and traders, the right to choose,” the marketplace wrote on Twitter. “Putting belief aside, if there was anything self-evident in crypto, it’s the ‘code.”
Previously, X2Y2 offered a Flexible Royalty model that let the creators and collectors alike have input into how strictly the marketplace enforced royalties for each project.
However, only certain types of NFT projects—specifically artwork and access passes—could choose to have royalties fully enforced. Profile picture (PFP) projects were not eligible for that option.
“With OpenSea risking its market share and taking a brave move to defend royalties,” X2Y2 wrote, “they have our respect!”
OpenSea responded on Twitter to say that it had removed X2Y2 from its marketplace blacklist, which means that NFTs from creators that use the OperatorFilter code can now be traded on X2Y2.
“Proud to stand with you—and the many brilliant creators in our community—on this critical measure,” OpenSea wrote. “We hope other marketplaces will continue to join us. Onwards and upwards.”
As a relatively new NFT marketplace, X2Y2 is already doing exceptionally well. They currently share around 22% of the Ethereum NFT marketplace in volume. Now, X2Y2 wants to focus on rewarding the creators who make the space possible and will enforce NFT creator royalties.
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