How Yuga Labs’ Plan to Champion NFT Royalties Works

Yuga Labs takes a major step in its support for NFT royalties.

Bored ape ready to save the NFT in water at any moment.
Created by Kornelija Poderskytė from DailyCoin
  • Yuga Labs has taken a significant step to enforce NFT royalties.
  • The move comes ahead of a joint NFT marketplace launch with Magic Eden on Ethereum.
  • Yuga Labs’ move could potentially reshape the NFT landscape after a massive shift towards making royalties optional.

Over the past two years, NFT royalties have become a hot-button topic, casting a divide between collectors and creators with marketplaces stuck in the middle. Amidst the back and forth, Yuga Labs, the creators of blue chip collections like the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC), has long made its pro-royalties stance clear, emphasizing a belief in a ‘creator-led Web3.’ 

In the latest instance, the firm has taken a significant step to enforce its stance that could set a precedent for other creators and reshape the NFT landscape.

Yuga Labs to Boycott Royalties-Free NFT Marketplaces?

On Monday, February 26, Yuga Labs disclosed that it would be dropping support for marketplaces that do not enforce royalties for all creators for several of its collections. 

The announcement comes as the Yuga Labs-backed Magic Eden Ethereum marketplace that will contractually implement creator royalties is set to launch on Tuesday, February 27.


“In sync with the marketplace launch, tomorrow we will be sunsetting our support for marketplaces who don’t support royalties for ALL creators,” the firm wrote.

How the Yuga Labs Plan Would Work

As part of the move, Yuga Labs will be introducing filters to the smart contact code of some of its collections.


Collections with the royalties filter outlined by Yuga Labs are primarily tied to the Yuga Labs Otherside metaverse project. They include Otherside Expanded, Otherside: Vessels, Otherside: Loot, and Otherside: Ship Parts. The firm did not include BAYC and MAYC in the list.

With the recent move, holders would no longer be able to list or purchase collections with royalty filters on platforms that do not protect creator royalties on a protocol level. The blocked platforms are likely to include OpenSea, Blur, and LooksRare, all of which allow traders the option of not paying royalties.

Potential Ripple Effects?

As one of crypto’s leading NFT creators, Yuga Labs’ recent move could influence other creators to take a similar approach to protect their royalties. In the case of widespread adoption, NFT marketplaces like OpenSea and LooksRare, which switched to an optional royalties model in response to Blurs’ rise, may again be forced to switch models to support popular collections.

NFTY.Finance co-founder “Digital Lawrence” shared this view, noting that the Yuga Labs move potentially gave Magic Eden a competitive advantage.

For creators, the potential market shift will likely serve as a boon, as they will be guaranteed to earn passive income from their projects long after minting them. 

While proponents of royalties contend that this extra boon for creators would incentivize innovation, detractors argue that it complicates trading for holders and can drive harmful speculative behavior.

On the Flipside

  • Some users have raised concerns that the Yuga Labs filter raises red flags over how much control minters have over user NFTs.

Why This Matters

Yuga Labs is behind some of the most popular NFT collections. The firm’s decision to drop support for marketplaces that do not enforce royalties could have industry-shaping consequences.

Read this for more on Yuga Labs’ pro-royalties stance:
Yuga Labs, Magic Eden to Launch Pro-Royalty NFT Marketplace

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.