Truth Labs, the company behind the popular Goblintown NFT collection, has made headlines once again by replacing the artwork on its flagship NFT project. The move was made to make a statement regarding creator royalties, and it has sparked controversy within the NFT community.
The new artwork is a single-fingered salute to those who circumvent creator royalties, and it was accompanied by a sarcastic statement from Truth Labs: “Fuck royalties. Fuck supporting building and creatives. Flipping is the heart of what makes Web3 special. Honor the flipper, fuck the community. Long live the slow rug.”
The statement highlights a growing issue in the NFT world. Many artists feel they are losing out on much-needed revenue due to the lack of enforceable royalties on NFT marketplaces. Some platforms have abandoned this model to attract more traders, offering bare minimum or optional royalties. However, Truth Labs is taking active steps to protect its creator royalties model. The company has disabled the trading of its NFTs on Blur and OpenSea while it upgrades its smart contract system to ensure the complete payment of creator royalties.
The controversy surrounding the new artwork has not stopped Truth Labs from moving forward with its plans. As part of the migration to the new smart contract system, the company automatically airdropped new versions of the impacted NFTs to holders on April 16. This included modifications to collections such as IlluminatiNFT, The 187, and Grumpls, which have also received criticism from NFT holders who say it indicates centralized decision-making.
Rahim Mahtab, founder of ArtsDAO, spoke out on the matter, saying that “not giving your holders the chance to [make] this decision goes against the ethos of this space.”
The issue of creator royalties in the NFT world is a complicated one. While artists deserve to be compensated for their work, the lack of enforceable royalties creates an environment where flipping and profit are prioritized over supporting and building up the NFT community. As the NFT market expands, it will be interesting to see how platforms and creators work together to find a solution that benefits everyone.
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