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The Truth Hurts
NFT market participants reacted loudly to Truth Labs' temporary metadata update ahead of a weekend contract migration. I'll dive in below.
Today's top news includes:
Truth's contract migration
Aptos' grant program
Veefriends x Courtyard
The Truth Hurts
Truth Labs made a loud statement earlier this week when it changed the metadata of its four NFT collections as part of the initial stages of its planned migration to new contracts.
Here's what holders of goblintown, Illumanti, The187, and grumpls NFTs can now find in their wallets.
Not exactly family-friendly, but then again, goblintown's loyalty to piss never fit that bill.
But the level of grotesquery encapsulated above is actually far from the points I'd like to think about in my final day filling in for Tyler. In fact, given the monstrosity I'm subjecting our readers to, there is a small chance that I'm never asked to fill in ever again.
But I digress...
Truth's metadata change, which you can read about in full here, provided me with a not-so-subtle reminder of two important truths about the current state of NFTs, and I'd like to pass those on to you.
The Royalty Conversation Isn't Going Away
The impetus behind Truth's move is part of a new meta for NFT projects. I'll call it…" contract migration meta."
NFT projects, like Truth Labs, Creepz, the Plague, and others, are more or less "rebooting" NFT collections and smart contracts to allow for on-chain royalty enforcement.
This comes on the heels of the long-reported royalty and marketplace wars, where the effective royalty paid to creators is trending towards 0.
But now creators are striking back, clinging to royalties as one viable revenue stream for their projects.
Take a look at this incredible data set from NFTstatistics from the very beginning of the royalty decline and conversation. You can find the original thread here.
Most of the successful PFP projects up to this time had made the majority of their revenue via mints, instead of royalties. The obvious exceptions above are BAYC and Doodles.
Continuing through NFTStats thread will get you to his thoughts on follow-on mints, seemingly one of the preferred revenue streams for projects (especially if royalties are not an option..and this was before that really took off).
I think requiring projects to make revenue from follow-on mints is bad for long-term holders. WoW peaked w the Galaxy mint. BAYC price peaked w Otherdeed mint. CoolCats have struggled since CoolPets mint...
As market participants, can we really afford to have it both ways? Low to no royalties, plus no follow-on, diluting mints?
I don't think so.
Creators will keep working towards royalty enforcement.
Major marketplaces and traders will keep working towards royalty *unforcement* (I made up that word).
Leaving you, the reader, and me, the news guy, mired in a royalty conversation for years to come.
Not Your Keys, Not Your Coin...The JPEG Version...Kinda
The metadata uproar in this particular scenario seems overblown, as Truth Labs insists that it will change the metadata back to match each previously revealed NFT from the aforementioned collections. Plus, metadata updates are not new. Azuki's BEANZ collection was once a care package, and then a big pile of dirt.
Jack Butcher has been changing the metadata of his Opepen's and Checks collections at an almost daily rate, most of which have been celebrated by the community.
But the fact remains, in many cases, holders are at the mercy of some central party (Truth Labs) to ensure their NFT is what it used to be. And not all users know that.
Take this reply to the Truth tweet.
It may seem like a silly response, but it IS a very real concern if the metadata is not frozen or the project has burned the keys to the deployer address. You might remember that BAYC only recently did this, but prior to doing so, more Apes (seemingly legitimate ones) could have been minted.
I fully expect that Truth Labs will make everyone whole, and all those hoarding precious goblins will have the goblin they had before. But, on a slow week of NFT news, I couldn't help but pass along some cold, hard truths.
🚚 What else is happening in NFTs?
Here is the list of the headlines from Wednesday in NFTs:
Trading volume was essentially flat day over day, registering around 19.9K ETH on Wednesday.
Azuki is partnering with IPX to collab its BEANZ collection with the LINE FRIENDS IP.
Aptos unveils an artist grant program to bring digital art to its blockchain. The foundation has set aside $20 million in funds.
VeeFriends is partnering with Courtyard to redefine physical collecting backed by NFTs on the blockchain.
Kanpai Pandas is teaming up with First Round Management to expand its footprint in sports.
Truth Labs updated the metadata for its NFT collections, causing a stir on NFT Twitter.
It's day two of NFT NYC. Plan your NFT NYC itinerary with our NFT NYC Events Guide.
🌎 Around Crypto and Web3
A few other Crypto and Web3 headlines that caught my eye:
The crypto market is up in the last 24 hours. BTC +0.7%, $30,234; ETH +6.2% at $1,990; APE -0.3% to $4.48; SOL +2.9% to $24.18
ETH successfully completed its Shapella Upgrade. Learn more about ETH's upgrades in our guide.
Manifold introduced "Multiburn," extending the options available to creators hoping to get creative with burn mechanisms.
🚀 NFT Total Volume
Wrapped CryptoPunks (5,160 ETH, 55.75 ETH Floor)
BAYC (5,060 ETH; 55.20 ETH)
Azuki (1,978 ETH, 14.87 ETH)
MAYC (1190 ETH, 13.02 ETH)
BEANZ (1,080 ETH, 1.49 ETH)
📈 NFT Floor Price Increase
Weirdo Ghost Gang (67%, 0.71 ETH Floor)
BasedHeads (54%, 0.05 ETH)
adidas Originals: Into the Metaverse (33%, 0.71 ETH)
FewoWorld Paint (26%, 0.47 ETH)
Super PUMA (22%, 0.14 ETH)
🗓 Upcoming NFT Mints and Reveals
A few drops later today, with the most notable the Reddit Gen 3 Avatars (though a time is still TBD).
The Poser Party (12 p.m. ET); 0.029 ETH
Lake Festival by Matt Perkins (1:00 p.m. ET); $200 USD
Escher Exclusive No. 4, Human After All; 0.25 ETH
Enjoy this write-up? Follow along with me on Twitter @lhitch09 or reach out via email email@example.com.
For all upcoming mints, see Lucky Trader's Project Schedule page.