Royalties are an important revenue stream that supports creators and enables them to grow their projects. These royalties are being threatened by marketplaces allowing collectors to set custom royalties.

There will eventually be multiple sources of sustainable revenue for NFT projects, but for now, royalties are one of the main sources of funding. When used correctly, royalties assist projects develop and create value for their holders. In fact, some of the top projects in the space use royalties to continue driving value to their community, and the ecosystem at large.

We’re launching MetaShield in partnership with Coral Cube to give creators the ability to track SOL NFTs listed with custom royalties and take the actions they see fit to protect their business.

MetaShield identifies NFTs listed/traded on marketplaces that bypass creator royalties. Creators can “shield”, or take actions as they see fit like updating metadata, flagging the NFT, or blurring the image.

When an NFT that has bypassed royalties is bought, it will incur a debt for the unpaid royalty that can be paid to make the NFT “whole” again. The idea of shielding is not to punish buyers, but acts as a way of warning a potential buyer that they’re not honoring the creator royalty.

MetaShield is one tool we’ve developed to address the issue of bypassing royalties, and we'll continue to develop more based on the needs of creators.

As always, we welcome discussion from the broader community. Our role is to provide tools for creators. With no creators, there is no marketplace.


Accessing the repayment tool:

MetaShield allows for royalty debts to be settled by anyone – it doesn’t have to be the same person who holds a shielded NFT.

There are three ways to access the repayment flow:

  1. https://coralcube.io/metashield - this will check for "shieldable" items in the connected wallet. Shieldable NFTs are:

    1. NFTs already shielded (modified by the creator)

    2. NFTs that have accumulated debt, and

    3. NFTs listed in marketplaces with customized royalties.

  2. https://coralcube.io/metashield?collection_symbol={symbol} - this will display all shieldable NFTs for a given collection symbol

  3. https://coralcube.io/metashield?mint={mint address} - this will show the selected NFT with corresponding actions depending on the status of the item

Repaying a debt

Should an NFT be shielded (modified by the creator) and/or accumulate debt, it can be accessed through the above links and will show as a card with a button to ‘Pay Debt.’ The debt here is calculated as the cumulative debt, i.e., the gap between royalties paid and the royalty amount embedded in the NFT’s metadata for all trades of that specific NFT from a point in time specified by the creator.

Once the debt on an NFT is settled, then you'll have to wait for the creator to un-shield the NFT if it was previously shielded. Should any of the holder benefits been revoked, then it's also up to the creator to restore these after a debt is settled.

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