Goblintown NFT inventor rubbishes the collection, inactivates transaction following royalties stalemate
Truth Labs, the company behind Goblintown NFTs, has trashed the collection and deactivated trading of its digital assets, surprising holders. The move follows the creator royalties’ standoff witnessed in the NFT world.
Goblintown NFT surprises
Goblintown NFTs, which burgeoned last year when the NFT market was in a bearish mode, have reached a premature ending following a stalemate in creator royalties. Truth Labs is accused of rug pull after converting its project’s digital artworks into GIFs displaying a middle finger.
All the 10,000 NFTs in the collection are now animated to read “Fuck royalties” and go on to say “Fuck supporting creators.” The creator has indicated that flipping is at the core of Web3 technology while telling the community to honor the flipper.
Truth Labs indicated that it had discontinued trading, listing, or requests on its Goblintown NFTs on marketplaces such as Blur and OpenSea. The company intends to move the digital assets to novel smart contracts with the ability to implement on-chain creator royalty disbursement.
Truth Labs said it intends to fancy holders with a new airdrop of affected NFTs by Sunday. According to the company, each holder will automatically get the NFTs in their wallets.
Creator royalties’ stalemate
Truth Labs has been steadfast in favoring creator royalties amid the storm, where many topmost marketplaces such as OpenSea and Blur introduced a 0.5% minimum fee for creator royalty. The NFT industry creator royalty is charged on sales on the secondary market, varying from 5% to 10% of the digital asset’s sale price.
The creator royalties deliberation has been unending for a while, and Truth Labs is one of the proponents who want royalties retained during the NFT market interruptions in recent months.
Truth Labs’ support towards creator royalties has caused an uproar amid Goblintown holders, whereby some have faulted the team for not offering value. Others have accused the company of disregarding decentralized or voting mechanisms when making decisions.
Royalties are a source of revenue for NFT creators. For instance, projects like Goblintown that have attracted over $101 million in trade volumes, according to CryptoSlam data, are a good source of revenue for creators.