I was inspired to write this post in response to OpenSea's latest stance on Resale Royalties (Creator Fees) which effectively eliminates royalties for Existing Collections without on-chain enforcement.
Tokenizing art enables artists to sell artwork directly to collectors or even give their work away for free and earn a living from resale royalties.
Resale royalties financially empower artists in a way previously unavailable before blockchain tech. They can also motivate a specific type of collector — the kind drawn to continuing patronage of the artists they collect — knowing that a future resale of the NFT will benefit both themselves and the original creator.
Before blockchain tech, resale royalties were nearly impossible for artists to collect. In the traditional art market, there's no way to immutably prove an asset has changed hands, no way to establish an honest resale price, and thus no way to determine whether an artist received their fair share.
rather disappointed after reading the @OpenSea news. eliminating royalties is a step backwards. royalties enable greater durability in artistic careers and financially empower artists in a way previously unavailable before blockchain tech. this is an L— CONNiE DiGiTAL (@ConnieDigital) November 6, 2022
With the tokenization of art, it's become possible for the first time in history to program royalties around the ownership of works of art. Royalties enable a form of passive income for artists unlike anything else.
With a 24/7, globally accessible secondary market, royalties also allow for greater flexibility and durability in artistic careers. Stories of artists waking up to a surprise, overnight payment from an unanticipated resale — previously unheard of — is becoming commonplace.
Because of resale royalties, many artists can spend more time developing their creative practice and producing higher-quality work instead of suffering the inefficiencies inherent in the traditional art market.