Building Resilient NFT Ecosystems: A Call for Sustainable Rake Policies

In the fast-paced world of NFT collections, the initial hype and momentum often give way to a significant challenge: the lack of liquidity and volume. As the fervor fades, NFT projects find themselves grappling with sporadic moments of sudden liquidity around announcements, leaving creators wondering how to retain the market's attention in the face of a short attention span society.
Daily updates might seem like a logical strategy to keep the market engaged, but the reality is that it's impossible to build and innovate fast enough to please the ever-changing preferences of a dynamic market. Furthermore, attempting to generate continuous excitement often leads to drama, which, while initially captivating, can exhaust participants over time.
Amidst this dilemma, a critical issue surfaces - the toll that excessive rake takes on the ecosystem. To establish a thriving and sustainable NFT space, there is a pressing need for stability during periods of low interest. One proposed solution lies in reducing the rake on the ecosystem for participants involved.
However, a direct reduction in rake doesn't guarantee that more value will be preserved within the ecosystem. The key lies in injecting the rake reduction back into the ecosystem over time, filling the gaps in attention that naturally occur in the market. This approach aims not just to please the market momentarily but to feed it consistently, ensuring the sustenance of activity and engagement.
A major challenge in this quest for sustainability is the prevalence of flat royalties that don't scale with the NFT's price, coupled with market/taker fees. High rake can be acceptable if it is sustainable and allows for potential growth. Sustainable growth, in turn, becomes feasible when the rake is strategically returned to the right places within the ecosystem.
In essence, the call for sustainable rake policies is a plea for a holistic approach to NFT ecosystem management. It's about fueling the ecosystem during slow times, prioritizing attention and retention over constant market-pleasing strategies. By reducing the impact of high rake during periods of low activity and reinvesting it intelligently, NFT projects can establish a resilient foundation that not only survives but thrives in the ever-evolving market landscape.