Trouble Amongst DeGods

Market Meditations | October 11, 2022

Popular Solana NFT project DeGods has embarked on its “next experiment” and switched to a 0% royalty model, meaning it will no longer earn royalties on the sales of its NFTs.

  • Launched in October 2021, DeGods is a collection of 10,000 Solana NFTs. Holders of DeGods and DeadGods NFTs can stake those NFTs and earn $DUST utility tokens.
  • The change was announced on the DeGods official Twitter account this Sunday. The tweet stated, we believe this is the best decision for our business at this time. It’s about time we take a new approach“. The new royalty structure will also apply to the related T00bs and Y00ts NFT collections.
  • DeGods pseudonymous creator Frank, took to Twitter the following day to defend the decision. He tweeted, if royalties go away… I think the space will be more open to redefining what a ‘rug’ means, referring to accusations that DeGods was a “rug pull” or scam.
  • Dylan Shub, the founder of Crown Capital DAO, challenged the DeGods announcement on Twitter. He tweeted, considering you made a big spiel when the royalty debate started about how you will enforce royalties or deny service. I would genuinely like to hear a bit more about how you arrived at this conclusion.

Thus far royalty fees have been the main incentive for teams to keep growing and building their teams and projects. Presently, it remains to be seen what the long-term implications of 0% royalties will be on the NFT market.