{"id":742,"date":"2022-04-20T15:10:57","date_gmt":"2022-04-20T15:10:57","guid":{"rendered":"https:\/\/grandpascrypto.com\/?p=742"},"modified":"2022-04-20T15:10:58","modified_gmt":"2022-04-20T15:10:58","slug":"meta-takes-50-of-nft-sales","status":"publish","type":"post","link":"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/","title":{"rendered":"Meta Takes 50% of NFT Sales"},"content":{"rendered":"\n<p><em><strong>tl;dr Summary:<\/strong> Meta announced it plans to take a 47.5% cut of creator\u2019s NFT sales on their virtual reality game Horizon Worlds. When compared to other creator marketplaces, Meta\u2019s sales split is competitive with their centralized counterparts but not amongst decentralized marketplaces\/games.<\/em><\/p>\n\n\n\n<p><strong>The Backdrop:<\/strong><\/p>\n\n\n\n<p>Meta has touted Horizon World as a <a href=\"https:\/\/s21.q4cdn.com\/399680738\/files\/doc_financials\/2021\/q4\/Meta-Q4-2021-Earnings-Call-Transcript.pdf\">core part of their Metaverse vision<\/a>, but its reception has had mixed reviews. While the game has reached over <a href=\"https:\/\/www.theverge.com\/2022\/2\/17\/22939297\/meta-social-vr-platform-horizon-300000-users\">300,000 monthly active users<\/a> since its release, many players find the experience to be lackluster. Chief amongst these complaints is the lack of quality content available on the platform.&nbsp;<\/p>\n\n\n\n<p>Meta has done a couple of things to address this issue. First, they established a <a href=\"https:\/\/about.fb.com\/news\/2021\/10\/expanding-horizon-new-funding-to-support-creators\/\">$10 million Creator Fund<\/a> in October 2021 before Horizon World\u2019s release to stimulate development. And, more recently, they announced their plans for creator monetization through Non-Fungible Token (NFT) sales.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Today we&#39;re announcing new tools for creators to start making money from their builds. It&#39;s just the start and we want to get this right so we&#39;ll first be testing these features with a few creators. Read more about the details here: <a href=\"https:\/\/t.co\/dVQuHucdHu\">https:\/\/t.co\/dVQuHucdHu<\/a> <a href=\"https:\/\/t.co\/RFZoKhDErG\">pic.twitter.com\/RFZoKhDErG<\/a><\/p>&mdash; Horizon Worlds (@HorizonWorlds) <a href=\"https:\/\/twitter.com\/HorizonWorlds\/status\/1513638043932053522?ref_src=twsrc%5Etfw\">April 11, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><strong>Is 47.5% Competitive?<\/strong><\/p>\n\n\n\n<p>While the former provides grants and support for development projects, the latter has stirred controversy because of Meta\u2019s plan to take a massive 47.5% of creator\u2019s NFT sales. The crypto community was particularly outraged by the news, quickly taking to Twitter to meme the absurdity of a near 50% sales split.&nbsp;<\/p>\n\n\n\n<p>When Meta was pressed on the backlash, Vivek Sharma, Meta\u2019s VP of Horizon reportedly responded that, <a href=\"https:\/\/www.theverge.com\/2022\/4\/11\/23020684\/meta-horizon-worlds-test-creators-sell-virtual-items-monetization\">\u201c[Meta believes] it\u2019s a pretty competitive rate in the market.\u201d<\/a><\/p>\n\n\n\n<p>So, it begs the question:<\/p>\n\n\n\n<p><strong><em>Is 50% a competitive rate in the market?<\/em><\/strong><\/p>\n\n\n\n<p>To better understand, we need to look at a few marketplaces that sell creator\u2019s\/developer\u2019s work.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Marketplace<\/strong><\/td><td><strong>Cut Taken<\/strong><\/td><\/tr><tr><td>Apple App Store<sup>(1)<\/sup><\/td><td>15-30%<\/td><\/tr><tr><td>Google Play Store<sup>(1)<\/sup><\/td><td>15-30%<\/td><\/tr><tr><td>YouTube<sup>(2)<\/sup><\/td><td>55%<\/td><\/tr><tr><td>Roblox<sup>(3)<\/sup><\/td><td>30-70%<\/td><\/tr><tr><td>The Sandbox<\/td><td>5%<\/td><\/tr><tr><td>Decentraland<\/td><td>2.5%<\/td><\/tr><tr><td>OpenSea<\/td><td>2.5%<\/td><\/tr><tr><td>LooksRare<\/td><td>2.0%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>(1) Reduced 15% cut only applies to the first million dollars of annual sales<\/p>\n\n\n\n<p>(2) Revenue split on ads<\/p>\n\n\n\n<p>(3) Not including Robux\u2019s cash out exchange rate<\/p>\n\n\n\n<p>At a glance, we can see a striking difference between the cuts taken by centralized versus decentralized organizations. Where the centralized organizations take upwards of 15%, decentralized organizations tend to be more conservative with how much they end up taking. Moreover, the cuts taken by decentralized organizations are often recirculated back into the community through their token or community funds.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">We\u2019re excited to launch the ability for <a href=\"https:\/\/twitter.com\/hashtag\/HorizonWorlds?src=hash&amp;ref_src=twsrc%5Etfw\">#HorizonWorlds<\/a> users to create, host, moderate, and attend events in Horizon Worlds. We can\u2019t wait to see the type of events you create! Learn more here: <a href=\"https:\/\/t.co\/ZwTLYV8ZYJ\">https:\/\/t.co\/ZwTLYV8ZYJ<\/a><\/p>&mdash; Horizon Worlds (@HorizonWorlds) <a href=\"https:\/\/twitter.com\/HorizonWorlds\/status\/1512550881295798276?ref_src=twsrc%5Etfw\">April 8, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><strong>Conclusion:<\/strong><\/p>\n\n\n\n<p>So, is Meta\u2019s 47.5% cut market competitive? Well\u2026 it depends on who you want to compare them to.&nbsp;<\/p>\n\n\n\n<p>If you contrast them with their most direct comparable, Roblox \u2013 who also provide the tools and a virtual world to develop on, then they provide a much better split. However, if you compare them to the split offered by decentralized games like Decentraland or The Sandbox, Meta\u2019s 47.5% take is bound to raise an eyebrow.&nbsp;<\/p>\n\n\n\n<p>The central frustration seems to be with Meta\u2019s use of Web 3.0 technology but not the democratization mindset that comes with it. While the splits listed above don\u2019t account for markups in transaction costs due to blockchain related fees such as gas, it is easy to understand why those in the world of Web 3.0 might see this split on NFTs sales as distasteful.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Meta announced it plans to take a 47.5% cut of creator\u2019s NFT sales on their virtual reality game Horizon Worlds. When compared to other creator marketplaces, Meta\u2019s sales split is competitive with their centralized counterparts but not amongst decentralized marketplaces\/games.<\/p>\n","protected":false},"author":2,"featured_media":740,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57],"tags":[579,156,580,575,581,576,573,481,118,101,578,469,577,518],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Meta Takes 50% of NFT Sales - grandpascrypto.com\" \/>\n<meta property=\"og:description\" content=\"Meta announced it plans to take a 47.5% cut of creator\u2019s NFT sales on their virtual reality game Horizon Worlds. When compared to other creator marketplaces, Meta\u2019s sales split is competitive with their centralized counterparts but not amongst decentralized marketplaces\/games.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/\" \/>\n<meta property=\"og:site_name\" content=\"grandpascrypto.com\" \/>\n<meta property=\"article:published_time\" content=\"2022-04-20T15:10:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-04-20T15:10:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/grandpascrypto.com\/wp-content\/uploads\/2022\/04\/Meta.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Basil\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/grandpascrypto.com\/#website\",\"url\":\"https:\/\/grandpascrypto.com\/\",\"name\":\"grandpascrypto.com\",\"description\":\"Crypto explained so well that your grandpa can understand\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/grandpascrypto.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/grandpascrypto.com\/wp-content\/uploads\/2022\/04\/Meta.png\",\"contentUrl\":\"https:\/\/grandpascrypto.com\/wp-content\/uploads\/2022\/04\/Meta.png\",\"width\":1280,\"height\":720},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/#webpage\",\"url\":\"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/\",\"name\":\"Meta Takes 50% of NFT Sales - grandpascrypto.com\",\"isPartOf\":{\"@id\":\"https:\/\/grandpascrypto.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/#primaryimage\"},\"datePublished\":\"2022-04-20T15:10:57+00:00\",\"dateModified\":\"2022-04-20T15:10:58+00:00\",\"author\":{\"@id\":\"https:\/\/grandpascrypto.com\/#\/schema\/person\/d4f83b657385438385e173ce362a1906\"},\"breadcrumb\":{\"@id\":\"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/grandpascrypto.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Meta Takes 50% of NFT Sales\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/grandpascrypto.com\/#\/schema\/person\/d4f83b657385438385e173ce362a1906\",\"name\":\"Willy Lee\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/grandpascrypto.com\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":{\"url\":\"https:\/\/grandpascrypto.com\/wp-content\/uploads\/2022\/04\/Willy-profile.png\",\"url2x\":\"https:\/\/grandpascrypto.com\/wp-content\/uploads\/2022\/04\/Willy-profile.png\"},\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/3d76631a60bf1a7fbc3039e3cd1d1aa6?s=96&d=mm&r=g\",\"caption\":\"Willy Lee\"},\"url\":\"https:\/\/grandpascrypto.com\/author\/willy-lee\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/","og_locale":"en_US","og_type":"article","og_title":"Meta Takes 50% of NFT Sales - grandpascrypto.com","og_description":"Meta announced it plans to take a 47.5% cut of creator\u2019s NFT sales on their virtual reality game Horizon Worlds. When compared to other creator marketplaces, Meta\u2019s sales split is competitive with their centralized counterparts but not amongst decentralized marketplaces\/games.","og_url":"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/","og_site_name":"grandpascrypto.com","article_published_time":"2022-04-20T15:10:57+00:00","article_modified_time":"2022-04-20T15:10:58+00:00","og_image":[{"width":1280,"height":720,"url":"https:\/\/grandpascrypto.com\/wp-content\/uploads\/2022\/04\/Meta.png","type":"image\/png"}],"twitter_card":"summary_large_image","twitter_misc":{"Written by":"Basil","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/grandpascrypto.com\/#website","url":"https:\/\/grandpascrypto.com\/","name":"grandpascrypto.com","description":"Crypto explained so well that your grandpa can understand","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/grandpascrypto.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","@id":"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/#primaryimage","inLanguage":"en-US","url":"https:\/\/grandpascrypto.com\/wp-content\/uploads\/2022\/04\/Meta.png","contentUrl":"https:\/\/grandpascrypto.com\/wp-content\/uploads\/2022\/04\/Meta.png","width":1280,"height":720},{"@type":"WebPage","@id":"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/#webpage","url":"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/","name":"Meta Takes 50% of NFT Sales - grandpascrypto.com","isPartOf":{"@id":"https:\/\/grandpascrypto.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/#primaryimage"},"datePublished":"2022-04-20T15:10:57+00:00","dateModified":"2022-04-20T15:10:58+00:00","author":{"@id":"https:\/\/grandpascrypto.com\/#\/schema\/person\/d4f83b657385438385e173ce362a1906"},"breadcrumb":{"@id":"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/grandpascrypto.com\/meta-takes-50-of-nft-sales\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/grandpascrypto.com\/"},{"@type":"ListItem","position":2,"name":"Meta Takes 50% of NFT Sales"}]},{"@type":"Person","@id":"https:\/\/grandpascrypto.com\/#\/schema\/person\/d4f83b657385438385e173ce362a1906","name":"Willy Lee","image":{"@type":"ImageObject","@id":"https:\/\/grandpascrypto.com\/#personlogo","inLanguage":"en-US","url":{"url":"https:\/\/grandpascrypto.com\/wp-content\/uploads\/2022\/04\/Willy-profile.png","url2x":"https:\/\/grandpascrypto.com\/wp-content\/uploads\/2022\/04\/Willy-profile.png"},"contentUrl":"https:\/\/secure.gravatar.com\/avatar\/3d76631a60bf1a7fbc3039e3cd1d1aa6?s=96&d=mm&r=g","caption":"Willy Lee"},"url":"https:\/\/grandpascrypto.com\/author\/willy-lee\/"}]}},"authors":[{"term_id":572,"user_id":0,"is_guest":1,"slug":"willy-lee","display_name":"Willy Lee"}],"_links":{"self":[{"href":"https:\/\/grandpascrypto.com\/wp-json\/wp\/v2\/posts\/742"}],"collection":[{"href":"https:\/\/grandpascrypto.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/grandpascrypto.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/grandpascrypto.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/grandpascrypto.com\/wp-json\/wp\/v2\/comments?post=742"}],"version-history":[{"count":1,"href":"https:\/\/grandpascrypto.com\/wp-json\/wp\/v2\/posts\/742\/revisions"}],"predecessor-version":[{"id":743,"href":"https:\/\/grandpascrypto.com\/wp-json\/wp\/v2\/posts\/742\/revisions\/743"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/grandpascrypto.com\/wp-json\/wp\/v2\/media\/740"}],"wp:attachment":[{"href":"https:\/\/grandpascrypto.com\/wp-json\/wp\/v2\/media?parent=742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/grandpascrypto.com\/wp-json\/wp\/v2\/categories?post=742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/grandpascrypto.com\/wp-json\/wp\/v2\/tags?post=742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}