These past two days, I’ve again been seeing the secondary market arguing about royalties. To put it plainly, I understand why both sides are upset: creators want a steady cash flow, while trading platforms/users feel, “I already gave you my liquidity—why should I be charged yet another layer on top?” From a market-making perspective, I’m a bit more cold-blooded: once the fee structure changes, liquidity depth will basically move on its own. LPs already fear impermanent loss in the first place, and when the rules are uncertain, they’re even more likely to pull out. In the end, it looks like it’s protecting creators, but the result could be thinner trading, a more fragile floor, and creators might not necessarily receive more.

Also, public opinion now likes to tie together ETF fund flows, risk appetite in US stocks, and crypto’s rise and fall when interpreting the situation. When market sentiment twists, liquidity is drained from NFTs first; then royalties—something that’s a “long-term topic of discussion”—instead becomes a short-term game of passing the blame back and forth. Anyway, I only look at two things right now: real trading activity and order depth. Royalties can be set however they want, but don’t change them day by day… patience really matters more than slogans.