BAYC's founders want a royalty model for NFT creators that ensures free NFT transfers between wallets and encourages creators to stay in the NFT ecosystem.

The founder of the ongoing non-fungible token (NFT), Bored Ape Yacht Club (BAYC), weighed in on the copyright debate and shared a possible way forward on what he believes are the best deals on the topic.

Copyright is "the biggest factor that brought them [creators and artists] to this world. ecosystem," according to a blog post co-signed by BAYC co-founder Wylie Aronow, co-founders Greg Solano and Kerem Atalay on Nov. 8.

The post was in response to OpenSea's November 6 announcement that it would follow the lead of other NFT marketplaces in terms of copyright enforcement, with Aronow stating that it demonstrates his intention to follow suit "move in with the rest of the pack and remove creative royalties from their platforms' legacy collections This move was "not cool," he said, adding:

"NFTs were about empowering creators as much as it was about owning users' digital assets."
In response, the founders of BAYC proposed a model for NFT copyrights that uses "allowed lists" encoded in an NFT smart contract that allows trading of NFTs between regular wallets, but only in "trade-respecting markets." ".

As a first step, a basic version of how this would work was explained to determine whether the wallet making the transfer request is a regular wallet or a smart contract.

Unlike traditional wallets, smart contract-initiated transfers are controlled by a "contract oracle known to respect copyright," and requests are approved if a match is found.

This model will enable free wallet-to-wallet transfers, which the BAYC founders emphasized as a requirement to ensure that one of the primary benefits of NFTs, asset ownership, is the ability to move assets between wallets for free.

The BAYC founders acknowledge that there are still trade-offs in this model, citing the maintenance of the allow list and a growing barrier to entering new markets, but they point out that for the time being, this allow list is relatively small:

"For starters, there are only a few good actors known today." It's simple to get started with the allow list. Simply include some marketplaces that pay maker fees. Finished."

They see the upkeep of the allow list as a more difficult problem, particularly the formation of the governing body, adding:

"The primary task is to determine the appearance of this governing body." But I believe this is a solvable issue that the NFT ecosystem must address."

On November 8, popular NFT artist Mike Winkelmann, known as Beeple, praised the post as a great way to protect creators' copyrights, as many NFT markets avoid them.