Apple, Solana Nfts, Vivek Sharma discussed on The Breakdown with NLW
Fees. One of the largest exchanges in the U.S. FTX U.S. is also the only leading exchange that supports both Ethereum and Solana NFTs. When you trade NFTs on FTX, you pay no gas fees. Download the FTX app today and use referral code breakdown to support the show. With that, let's shift to something that had everyone fired up and that's Facebook or meta's fees for its new horizon worlds platform. In a blog post on Monday, meta said that it's going to be testing virtual sales inside horizon worlds. Important background context is that Zuckerberg has previously criticized Apple for its 30% in app fees. In a November post on exactly this topic, he said quote, as we build for the metaverse, we're focused on unlocking opportunities for creators to make money from their work. The 30% fees that Apple takes on transactions make it harder to do that. So we're updating our subscriptions products are now creators can earn more. Then this week from Business Insider, quote meta charges a platform fee of 30% for sales made on meta quest. It's virtual reality system, which was formerly known as Oculus. On top of that, horizon worlds met as metaverse system will charge a 25% sales fee. This means metal will take a cut of up to 47.5% from the sale price, leaving the seller with 52.5%. Insider was basically like weight, are you serious? And so reached out to the company for confirmation of this math. That math was indeed confirmed by a spokesperson. Quote, if a creator sells an item for a dollar, then the meta quest store fee would be 30 cents, and the horizon platform fee would be 17 cents, 25% of the remainder, leaving 53% for the creator before any applicable taxes. Over time we plan to bring horizon worlds to more platforms and so the platform few won't always be going to meta. S horizon world rolled out to more platforms like mobile, we expect those platforms to charge their own feet. The horizon world fee, which is 25% of the remainder would be applied after any relevant hardware platform fee has been applied. And then to top it all off Vivek Sharma met his VP of horizon, told the verge, quote we think it's a pretty competitive rate in the market. We believe in the other platforms being able to have their share. So of course, everyone was like, are you effing kidding me? Starting, by the way, with Apple. Fred sanes and Apple spokesperson said in an email, beta has repeatedly taken aim at Apple for charging developers a 30% commission for in app purchases in the App Store. And if you small businesses and creators as a scapegoat at every turn. Now meta seeks to charge those same creators significantly more than any other platform. The announcement lays bare met as hypocrisy, goes to show that while they seek to use apple's platform for free, they happily take from the creators and small businesses that use their own. The crypto crowd was even more brutal. This has definitely become a rallying cry for many, including punk 6 5 two 9. He writes in one of his classic threads, tweet one, 60 crying laughing faces, tweet two. I present to you the meta economic model. Step one pretend NFTs, centralize in game objects basically. Step two, 47.5% transaction fees. Yes, 47.5% to drop objects into here. 47.5%. 47.5%. So long as we are not regulated out of existence, IE preserving non custodial wallets, we're going to win by default. 6 5 two 9 couldn't help himself though and he just kept going. 47.5% meta take rates on digital goods are a pretty good reason to push for an open metaverse, even if you don't believe me on all the risk of dictatorship stuff. State of tech, in crypto, 2.5% transaction fees are outrageous. Let's launch ten competitors this year to drive this to zero. Web two. We think a 47.5% transaction fee on digital objects is pretty competitive to be honest. Government. How can we protect consumers from crypto? Now, I'm obviously adding the voices to match the intonation. But I think that the point is dead on. Part of the upside of unfettered markets is that they create competition that makes it impossible for this sort of virtual exploitation to take place. Something that the only possible way that Facebook wins because of this is regulation. Maya's Khan writes Mark Zuckerberg proposing a 50% cut of NFTs on meta, feels like the beginning of a prolonged regulation war between crypto natives and corporations looking to profit from it. However, this doesn't stop some people from being scared. D.C. investor writes while I enjoy trolling meta being out of touch, the proper way to assess the 47.5% zuck tax is based on total addressable markets. IE if meta offers more than two X earnings pre zuck tax potential for a creator versus a public chain that it may make sense for a creator to use it, in short, the only answer is scale. Importantly though, the web three crowd in the open metaverse kids aren't just competing with meta. It was also announced this week that LEGO and Sony are pumping $2 billion into Epic Games the creators of Fortnite to build a metaverse. Keep in mind that Fortnite has arguably been host to the biggest metaverse experiences yet, such as the Travis Scott concert in Fortnite a couple years ago, which saw 12.3 million concurrent users at the concert and 27 million overall. There is a lot more respect and fear in this announcement. 6.529 again says just in case we are wondering how much we need to scale up to be competitive. Alex Krueger writes Epic Games as officially entering the metaverse race. This will be huge. NFT trader the essay says smart money is still pouring into the metaverse and NFTs. However, they're investing in companies with proven experience, prototypes, and shipped products. Retail investors need to wisen up and hold the whole crypto and NFT industry to this standard. Finally, D.C. investor again wrote quick and dirty metaverse predictions thread starring a, meta slash Facebook, B, Epic Games, C Twitter, and D Ethereum L twos and other public blockchains. A meta slash Facebook. We'll build off of social apps and VR platform to push a controlled and mostly closed ecosystem. We'll push their own private consortium blockchain with long-term goal of global financial domination via the metaverse token Congress will probably ignore Libra redux. B Epic Games will push game centric VR metaverse targeting mostly gamers. Focus mostly on in game items and then being able to use or flaunt those in social apps. We'll probably create a more open standard for any game publisher to join. Start as a private chain, then use public. C Twitter doesn't realize it's actually the center of the current online metaverse because most of the org do not think this way. They will likely squander everything they could have from this preeminent position and will just remain a 280 characters post app. D Ethereum, et cetera, will remain the home of the organic soul pushing online economic interaction forward. We'll be home to the highest value artifacts as lower cost grows on L two and other chains. Epic will probably integrate it eventually. Facebook will only do it if forced by others. Still early days and things could change dramatically. By the way, I think trolling on metaverse means nothing is wrong. I get that it's amorphous now, but it's obviously this is going to grow into something. Crypto has shown the power of permissionless or relatively permissionless online economic interactions. There's no going back. Now I thought D.C.'s thread was interesting to close on, especially given what we've learned about Twitter's potential future since he wrote it. Would a private Twitter under the banner of Elon Musk be more or less likely to be at the center of the growing metaverse? I don't know, but it's a fun thing to think about. For now I want to say thanks again to my sponsors next to IO, arculus and FTX, and thanks to you guys for listening. Until tomorrow, be safe and take care of each other. Peace. Hey breakdown listeners come join coin desks consensus 2022. The festival for the decentralized world this June 9th through the 12th in Austin, Texas. This is the only festival showcasing and celebrating all sides of blockchain, crypto ecosystems, web three, and the metaverse, and is designed for crypto newbies, investors, entrepreneurs, developers, and creators. Don't miss speakers like Kathy wood, SPF, CZ, punk 6 5 two 9 and Joe lubin to name just a few. Use code breakdown to get 15% off your pass at coindesk dot com slash consensus 2022..