MetaFactory has introduced a new concept which allows the owner of a certain crypto art to earn money from merchandise sales. They call the concept NFT Collector Royalties. In this system both the creator of the original artwork and the current owner of the artwork share in the profits of merchandise sales.
Metafactory emphasized that this system benefits everybody. Thirty percent of the profits go to Metafactory, while 20 percent goes to the original creator. The remaining 50 percent go to the owner of the non-fungible token.
Rare Designer has the honor of supplying the first crypto art that will be made into merchandise. People can still place a bid on The Unknown Traveler / META-RARE ¢y多𐍉rg. The current highest bid is 2 ETH by NFT collector WhaleShark. Bidding will end at 4PM GMT. Metafactory will made a tank top, t-shirt and hoodie out of this first crypto artwork. They will distribute the profits every month in DAI to the wallet address of the token holder and the art creator.
On the blockchain we’ve already seen several initiatives that give the original creators a percentage of secondary sales. We’ve seen this for example in the sales of crypto art on platforms like Superrare and Rarible. In addition its this type of business model that convinced companies like Topps to get involved with the Wax blockchain.
What is crypto art?
Crypto art or digital art has been around for many years. However, without the existence of blockchain technology it was impossible to verify authenticity and rarity. Now digital art connects directly with an unique token on the Ethereum blockchain. That way buyers can see how many copies of a certain artwork there are, and whether the product is original.
The concept of seeing a digital image as art, is one thing. However, for many people it will be a challenge to consider digital images as valuable. Consider this: The Mona Lisa is worth many millions of dollars. If I would paint the Mona Lisa in an exact copy, it would be worth only 50 dollars. Because we all know where the original version is. Being able to verify the authenticity and rarity of a piece of art is crucial.
Some people don’t care about the Mona Lisa. It’s just a painting. They are happy to download an image for Google Images, print it on canvas and hang it in their living room. Others want the real deal. The same rules go up for digital crypto art. Some people want to original one, others are happy with a copy screencapped on their phone.
Crypto art is gaining popularity. Platforms like Rarible, Superrare and Knownorigins are thriving. The introduction of blockchain technology allowed digital artists to create unique artworks. Ownership and rarity are now verifiable through the blockchain, creating true value. Last year the crypto art market was good for 559 thousand dollars in trading volume. This was a 115 percent growth compared with the year before.