NFT royalties or Creator fees are a core value proposition of NFTs, but they’re also a touchy subject. As the debate surrounding NFT royalties rages on, one thing’s for sure: abandoning royalties means creators would be parting with a substantial source of passive income—and potentially leaving millions on the table.
As NFTs become more popular and more valuable, it seems likely that more creators will want to implement and control royalty systems themselves and take advantage of what they see as a core value proposition of NFTs.
We admit that on-chain royalty enforcement is difficult. Instead of on-chain enforcement, it’s historically been up to centralized NFT marketplaces to choose whether or not to enforce creator-imposed royalties.
In fact, this month has seen a lot of discussion about whether or not NFTs should be paying royalties at all—which is why we at NiftyKit decided it was time for us to chime in.
At NiftyKit, we aim to provide features for creators to manage their smart contracts. We want to give the creators the power to choose which operators can interact with their NFTs.
We’re excited to announce our newest feature: NFT Marketplace Sales Controls
This new feature allows you to choose which operators can interact with your NFTs. You get to decide who can make offers on your NFTs, where it sells, who can transfer them between wallets, and more.
We want to incentivize creators to continue to deliver value and prevent certain operators from taking advantage of their work.
The ability to “lock” your NFTs so that they cannot be transferred or traded in any way is available for all tiers of DropKit Pass.
How to Control Marketplace Sales for Your NFT Collection
All new Drop Collection Smart Contracts created with NiftyKit has the access to control their secondary sales. Inside your Drop Collection, you will find “Marketplace Controls” in the 3-dot dropdown menu.
You are able to toggle on and off to approve or block each marketplace.
The marketplaces available to block are:
Each time you block a marketplace, you will make a small smart contract call to update the settings for your entire collection.
This feature will allow creators to restrict certain operators from interacting with the NFT.
This will require knowing the operator’s smart contract address, but operators tend to create a proxy address for all permissions for usability purposes.
This may not be the solution to preventing all future transactions by those operators (they can change their smart contract address), but it allows creators to control who is not allowed to interact with their NFTs.
This does not solve the royalty problems presented in the abstract but provides more levers for creators to voice their opinions.
If you have questions, join our community here