Decentraland is a titan in the P2E-NFT industry. We have seen a sudden rise in public sentiment for games and metaverses that entertain the model of virtual real estate. This can mainly be attributed to the renaming of the Facebook ecosystem as Meta.
This allowed people to understand the P2E/NFT market better. This has consequently done a thorough job of driving demand for assets offered by Decentraland to the sky. With the cheapest $LANDs valued at more than thirteen thousand US dollars (around more than 3000 $MANA).
As a side note, if you are interested in buying Decentraland land, you can find more information about how to do that in the detailed YouTube video below.
All of this has inspired us to focus more and more on Decentraland as a whole. To make sure that we can provide reliable and easy-to-understand information on what seems to be one of the most famous metaverses in the world right now.
The Need for an Incentive
However, having said that, there were a few problems that were voiced by the Decentraland community. These issues were revolving around the reward system for creative designers that work behind the scenes to develop the $LANDs that the market cannot have enough of. It did not take too long for the community to get behind these developers. To try and create the perfect environment which would incentivize competitive developers to enter the scene and develop for the metaverse in the long run.
In early January 2022, Decentraland finally announced a royalty system for the creatives to promote a culture of quality self-subsistence for the metaverse. To make sure that the supply AND the quality of supply both hold up over a consistent period. And, to also make sure that the metaverse doesn’t rely on developers from any other metaverse to design for them. This culture of independence is necessary for a product or a title that is competing in a very saturated market. In a market that is extremely competitive and feeds off bits and scraps of small mistakes made by rival titles.
What Exactly Changed?
Previously, every sale in the marketplace allocated 2.5% of the total final fees to the DAO’s economy. For the sake of understanding better, this was a sales tax for the sellers. This was so, in both Primary market regimes as well as Secondary market regimes.
What do primary and secondary denominations mean? These are simple labels to categorize first-time sales by the marketplace to the buyer OR sales made by Landowners to new buyers (not first-time sales).
- After this announcement, the creative hands behind these wearables in $LANDs would be entitled to the 100% fee generated by the sale for secondary markets.
- Primary markets would continue to charge a 2.5% tax on the total sale fee.
Even though this does not feel like something that will make a huge difference, it is certainly bound to create a shared sentiment around the entire industry which relies on wearable developers.
Maintaining these routines will allow other metaverses to also retain their developers and work towards brand loyalty.
These factors are very prevalent in physical markets that have a highly competitive nature. And, seeing the same rules apply to virtual markets is certainly a breath of fresh air for critics that disregard crypto based on its volatility.
How Exactly Do Royalties Function?
Royalties are a consistent benefit for the creator of the asset. This means that every time an asset is traded on the marketplace, a certain percentage, in this case, 2.5% would go to that developer.
It is important to understand that this will also incentivize developers to achieve trader status as well. They would be able to become more active participants in the metaverse’s economy.
Lastly, these changes have been made for all future listings and trades, and all previously enacted trades will not follow this routine.
How to Get Royalties On Assets in Decentraland?
What is the wearables editor? The wearables editor is a creative tool that allows Decentraland’s creative community to upload additional data into, edit or publish your custom wearables to an asset.
To upload, edit or customize your wearable, whether a LAND or any other side asset, developers should sign up here.
Next, developers should go ahead and upload their edit or work onto this editor using the simple import mechanic. After importing these edits into the editor, the developers would probably need to create a collection of these edits. The options for this will be available in the editor.
As of now, each wearable item will have to adhere to the maximum file size limit of 2MBs. After uploading your wearable, you can choose which body type and size shall your wearable be applied. You can select which body type your wearable is to be provided for. The shape can either be x, y, or both. Wearables that are set to type x can only be worn by wearables with Body type x, while wearables set type y can only be worn by avatars with Body type y.
Alongside shaping the eyes, ears, and whatnot of the wearable, the editor tool also allows you to determine the rarity of such a wearable.
After you’ve uploaded your wearables, and attended to all the other technicalities, you can then start earning royalties! A more detail-oriented approach to creating an asset and then monetizing it on Decentraland is linked here. Moreover, if you want to read more about wearables in Decentraland, click here!
Royalties on Decentraland Assets: An Overview
When a title is making money-moves at the level that we know Decentraland is at the moment, balance is crucial. The game’s strongly-connected community speaks for the balance present. Elements of disunity are only going to slow down the title from reaching its goals and enacting its organizational strategy.
Hence, a unanimous concern from the community FOR creative developers is only a good building block. A building block toward a cohesive ecosystem that is self-reliant and very interdependent.