One of our core values is transparency, and continuing in that spirit we wanted to explain the changes we’ve decided to make in our fee structure. We created bitnifty with the intention to help artists first and foremost, and that has been an honor we have proudly undertaken over the past 6 months. Through this period, we have connected with incredible people and learned a lot, and these learnings have driven us to the 3 major changes we’re making.
As we’ve seen projects rise and fall over the past half year, we have seen collector sentiment develop general disdain for high royalty rates, generally seen as being above 10%. To benefit our collectors now and in the future, we will be slashing our royalty rates down from 10% to 5%. By taking a smaller piece from our collectors, we hope to establish greater value for collectors that support us. This is a feature that will be present in all future collaborations minted on platforms that allow us to determine royalties (Foundation being the notable exception).
We believe this will lend greater value to all our subsequent collections. For our first 5 collaborations, we believe antiqiuity will grow their value as we work to release a new collaboration every two weeks. We also believe immensely in the careers of the artists we have worked with and in the value their growing careers and reputations will lend to their first NFTs. As we work to establish greater benefits for our collectors, this is an immediate decision we can make to benefit them all, past and future.
Engaging with the bitnifty Commission Pool
Second, we have decided to participate more actively in the community with the bitnifty Commission Pool. We have realized there are many artists out there struggling to make their first sale. Often, they could benefit greatly from the momentum and publicity their first sale would bring, and we want to help as many people as we can get the ball rolling. So we’ve decided the bitnifty Commission Pool will be used to buy NFTs from artists who haven’t sold any yet.
Initially, we’d wanted the Commission Pool to be used to commission struggling artists. This will continue to be a possibility, but we one that we look to move towards on a longer timeframe as we establish the Commission Pool further. This additional usage will provide a lot of value to the community by providing helping spotlight artists that are ready for that breakout sale. We also believe we can benefit artists that we couldn’t work with otherwise because they don’t need help to make NFTs. This will establish a greater bitnifty presence in the community, and increase our opportunities for engagement.
Equalizing Fee Structure
When we set up our fee structure, we thought it reasonable to take a greater portion from secondary sales to pay for ongoing costs. As we’ve grown over the past half year, we have developed sustainability and acknowledge our main costs as being the minting fees we pay for our artists. As such, we have decided to take some more out of primary sales and give more to our artists from secondary sales. We will now request 5% more on primary sales and 10% less on secondary sales.
This sets our rates at 20% of primary sales, up from 15%, and the amount from royalty rates at 20%, down from 30%. 20% across the board is what we ask, half of which will always continue to go towards the bitnifty Commission Pool. In effect, we will have 10% that we can use to cover costs and grow while still offering the maximum possible value to artists.
We do not make these decisions likely. We have thought about them carefully to ensure that everyone wins. We are adamant in our belief that we should serve our artists first, our community second, and ourselves third. As we set our sights on a brighter future for ourselves and the artists we work with, we thank you all for your continuing support on this journey. Feel free to reach out to us on Discord or Twitter, we’d love to hear if you have any feedback for us. Thank you all for your support, and we wish you all the very best ❤