KidEight GEVOL raises royalties by 80% … but why?
Popular digital artist KidEight made some big waves with his GEVOLs NFT collection last week. On July 2, the creator of EVOLs tweeted that he would increase the secondary royalty for GEVOLS to 80% after September 2. In addition, he stated that he plans to purchase all GEVOL NFTs listed after that date. And if that’s not enough, he plans to burn the listed NFTs!
But what could motivate such a tough decision? Let’s take a look at KidEight’s wonderful announcement and what it might mean for GEVOL’s future.
Everything about KidEight’s stunning GEVOLs announcement
For those who don’t know, GEVOLs is an NFT collection that extends over KidEight’s EVOL character. Following its highly successful NFT minutes featuring EVOL, KidEight launched 8,888 GEVOL NFTs on August 31, 2021 at a price of 0.1 ETH per minute.
The current floor price of the collection is 0.17 ETH. What’s more, its unique container number currently sits at 3.5K, and the collection has collected more than 9,000 ETH in secondary sales volume. Speaking of secondary sales, the current manufacturer’s royalty on the collection is 8%. Thus, the increase announced by KidEight represents a 10x increase in royalty fees.
To be clear, creator royalty is the percentage of a secondary cell that a creator receives when their work is sold in a secondary marketplace like OpenSea. Significantly, this feature of the NFT is one of the most famous aspects of smart contract technology when it comes to compensating artists for their work.
However, in this case, an 80% royalty will leave a GEVOL seller with less than 20% of whatever NFT they sell (after the platform trading fee). Thus, an 80% fee is a substantial barrier to trying to sell an NFT.
Why is KidEight raising GEVOLs royalties?
Clearly, KidEight’s tweet suggests a fee increase is a clear move to encourage everyone but the strongest GEVOL supporters to list their NFT for sale before September 2nd. In other words, KidAit seems to be taking tough decisions as a way to weed out all non-diamond-handled GEVOL holders.
To that end, the side conversations between KidEight and his community in response to the tweets give us some more insight into KidEight’s thought process behind increasing GEVOL’s royalties. To be sure, the move has confused many KidAit supporters. One such person responded to his tweet as much as he mentioned, asking KidAtt when he asked, “Are you killing Gavols?”
KidAtt’s response to that person (@ Nft1oh on Twitter) details his thoughts. In it he says:
“I am reducing the supply of tokens, weeding out those who are asking for ‘Wayne’. A manufacturer launching an affordable project for collectors should not be seen as ‘Kalicha’. I’m just healing collectors right now. I am blessed to have solid supporters and collectors and I want to reward them. “
Thus we can assume that this move is a result of KidEight’s frustration with some GEVOL holders. In fairness, KidEight’s main grip seems to be something that the founders of many NFT projects often comment on. For example, NFT collectors may be quick to call legitimate projects angry if their floor prices stagnate or go down.
KidAit even commented that “the collection looks like a life sentence at the moment”. KidEight seems to have enough reason to shake the table to this extent that a creative’s passion project can be thought of as a prison sentence.
GEVOL’s increase in royalties is also aimed at reducing the size of the collection
Through these and other comments, it is clear that KidEight effectively wants to buy some of its collectors. Another important reason to note is that KidEight wants to trim the size of the GEVOL collection seriously. As mentioned earlier, there are currently 8,888 GEVOL. In a tweet, KidAit noted that he “always thought the token count should be 1-2K.” In another, he tells a person that he plans to “reduce the token count to less than 1000 in one way or another.”
All things considered, this is a significant NFT collection and a significant turn of events for the creator. It is unfortunate that KidEight has felt enough pressure to make such a move. Regardless, it would be very interesting to see how the pans out. And if other NFT makers are inspired to make similar changes.
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