NFT marketplace X2Y2 has moved to retain its customers by introducing an option that allows buyers set the royalty fee they wish to contribute to an NFT project.
The NFT marketplace issued the update on Aug, 26, detailing how royalties on the platform will be distributed going forward.
Buyers on X2Y2 can now choose the amount of royalties they would like to contribute to projects.
Dominant aggregators intend to provide similar functionality in the imminent future. As such, X2Y2 would like to make sure we are ready & staying on top of market movements.
— X2Y2 (@the_x2y2) August 26, 2022
Royalties are fees that accrue to the creator of an NFT project even after its been sold out. Creators are allowed to set the % fee that the buyer will be charged for purchasing their assets.
With the new update by X2Y2, buyers on the platform are at liberty to set the amount they would like to contribute to an NFT project. The default amount, is however set based on creators request but can be readily adjusted by the buyer.
X2Y2 wants to keep fees low
X2Y2 has been working to provide the lowest fee possible on its platform. It currently does not charge gas fees for listing NFTs, making an offer or lowering price.
In July, X2Y2 moved to keep its trading trading fees as low as 0.5%, while OpenSea and LooksRare charge 2.5% and 2% respectively.
As part of its effort to retain its users, the NFT marketplace stated it had to respond to the NFT royalty-free trend pioneered by SudoSwap.
X2Y2’s Head of Business Development said in a discord chat:
With Sudoswap’s entrance and obviously many buyers flocking over because of their 0% royalties set up, it’s been very complicated to find ‘something’ that allows us to still compete without screwing the creators.
A concerned user however questioned the sustainability of the model in the long-run, if buyers choose to avoid paying royalties.
If everybody does this and nft creators stop receiving royalties, how can the ecosystem survive ?
X2Y2 has generated 8,326 ETH as fees and currently holds 1,782,328 ETH in total volume on the platform, according to Dune Analytics.
Posted In: NFTs, Payments