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The Block Analyst: The Blur Royalty Mechanism Has Caused a Sharp Decline in Yuga Labs’ Royalty Income

According to The Block's analysis, Blur's introduction of a 0.5% royalty has greatly eroded the revenue of NFT studio Yuga Labs. Yuga Labs' royalty revenue for the third quarter of this year plummeted from $8.7 million in the first quarter to $2.5 million.

The Block Research analyst Brad Kay said that Blur's 0.5% royalty, coupled with attractive airdrops and bidding incentives, "increased traders' profits by reducing transaction costs and drew away a lot of user activity from platforms with higher fees such as OpenSea, while Yuga Labs had previously thrived on OpenSea." Kay believes that "this shift not only led to a sharp contraction in Yuga Labs' royalty revenue, but also caused a fundamental reshuffling of the NFT market."

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