According to The Block's analysis, Blur's introduction of a 0.5% royalty has greatly eroded the revenue of NFT studio Yuga Labs. Yuga Labs' royalty revenue for the third quarter of this year plummeted from $8.7 million in the first quarter to $2.5 million.
The Block Research analyst Brad Kay said that Blur's 0.5% royalty, coupled with attractive airdrops and bidding incentives, "increased traders' profits by reducing transaction costs and drew away a lot of user activity from platforms with higher fees such as OpenSea, while Yuga Labs had previously thrived on OpenSea." Kay believes that "this shift not only led to a sharp contraction in Yuga Labs' royalty revenue, but also caused a fundamental reshuffling of the NFT market."
All Comments