Newsletter #137

This week’s featured collector is CryptoJack2

CryptoJack2 has a diverse, and large, collection of Ethereum NFTs. Lots to see and appreciate here:

Let’s thaw the NFT winter together… Share this newsletter with your friends!


The results of last week’s poll: What initially drew you to NFT collecting?

Last week’s poll underscores that what drew most people into the NFT ecosystem was the appreciation of digital artistry. Community and financial speculation were tied for the second most reason people joined. The modest yet notable interest in blockchain’s technical side points to opportunities for innovation and education in this space. Collectively, these insights hint at a multifaceted NFT market where artistic merit, community ties, and economic potential coalesce to attract collectors.

Rarible Launches Royalty-Mandatory Blockchain

The RARI Foundation is launching RARI Chain — an Ethereum compatible blockchain that leverages Arbitrum to offer a royalty guaranteed infrastructure for NFTs. The blockchain will be unique because it embeds royalty enforcement within the architecture of its nodes—if trade don’t pay the royalty then the transaction will fail. The goal is to provide a secure and reliable method for NFT creators to receive compensation.

How Royalties Will Work on RARI Chain

Central to RARI Chain’s royalty system is the EndTxHook feature, which validates royalty payments post-transaction. If the transaction does not honor the stipulated royalties, it is automatically reversed. An NFT sale on RARI Chain is defined as a transfer of NFTs for ETH or ERC20 tokens, confirmed via transaction logs. In other words, the blockchain will automatically scan transactions to determine if an NFT was bought or sold and, if so, it will require royalties to be paid for the transaction to be approved.

Most interesting is that NFTs can be bridged to RARI Chain. This will allow creators and collectors to voluntarily transfer their NFTs to a royalty respecting blockchain.

Final Thoughts

The RARI Chain’s approach to embedding royalty enforcement within its blockchain architecture sparks two contrasting perspectives.

On one hand, it can be seen as a step forward in ensuring artists and content creators are fairly compensated for their work. This could potentially lead to a more sustainable and equitable ecosystem in the NFT space, encouraging more artists to participate.

Conversely, some may argue that this rigid enforcement of royalties could stifle the secondary NFT market. The mandatory royalty system might dissuade collectors and traders from engaging with NFTs on the RARI Chain, or bridging their NFTs, fearing additional costs and complexities. This could limit the liquidity and market reach of NFTs on RARI Chain, potentially impacting their overall value and appeal.

Ultimately, the RARI Chain approach only works if users flock to it.

Time will tell whether RARI Chain will take off. But it is clear that the royalty debate is far from finished as more and more novel solutions are being proposed.

This week’s poll: What do you think about the RARI Chain’s approach to NFT royalties?

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