This TIP proposes to lift the 2.5% creator royalty cap for projects listing NFTs on the Treasure Marketplace. The max cap for creator royalties will be set at 20%. Royalties proposed above 10% are to be discussed with the Council to ensure the respective communities are aware of the rates and the rationale. All fees will be clearly labelled on the marketplace.
Discussions with the community and builders have indicated that each project should have the flexibility over their own royalty rate based on the needs of their individual business model (within reason). This is particularly important for projects using a free mint distribution model; 2.5% creator royalties on a free mint is unlikely to be sustainable, particularly in a depressed market. The DAO’s fee will remain at 2.5% as will creator royalties for Treasure projects (eg. Bridgeworld, Smolverse, Life). Any proposed changes to the latter will be done through consultation with the community.
Currently NFTs sold on the Treasure Marketplace have a maximum 5% royalty, comprising 2.5% for the DAO and 2.5% for the creator. This cap was established back in November 2021 as part of TIP-02 as a temporary measure when the Marketplace was launched, and only Treasure created projects were listed.
Since then, the market and TreasureDAO have rapidly evolved. There are five external projects listed on the Treasure Marketplace with many more slated as part of deeper integrations into the Treasure Ecosystem. Many of these projects are using a free mint or partial paid/free mint model.
After discussions with the community and builders, it is the Council’s view that a restricted 2.5% creator royalty cap is unlikely to be sustainable under prolonged depressed market conditions. It also restricts much needed flexibility over the creator’s business model. This key business lever should be controlled by each project team, with the specific rate managed directly between the project team and their communities.
- Allow for a wider breadth of business model design and flexibility.
- Give creators more control over key revenue drivers.
- Foster healthier, more sustainable project runway / operations.
- Reduce reliance on the DAO for grants.
Lift the 2.5% creator royalty cap on NFTs sold on the Treasure Marketplace to a 20% max cap and a 10% trigger for disclosure discussions with the Council.
The royalty rates for each project must be clearly displayed on the marketplace and changes communicated clearly to respective communities. The DAO’s share will remain unchanged at 2.5%.
The polling process begins now and will end at 13:00 UTC on 20 April. If quorum is reached, a Snapshot vote will be put up shortly thereafter.