The Block analyst: The Blur royalty mechanism has led to a significant decline in Yuga Labs' royalty revenue, which has dropped from $8.7 million in Q1 to $2.5 million in Q3

ChainCatcher news, according to an analysis article by The Block, Blur has introduced a 0.5% royalty, which has significantly eroded the revenue of the NFT studio Yuga Labs. Yuga Labs' royalty revenue in 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 stated that Blur's 0.5% royalty, combined with attractive airdrops and bidding incentives, has motivated traders, "By reducing trading costs, it has increased traders' profits and siphoned off a significant amount of user activity from higher-fee platforms like OpenSea, where Yuga Labs previously thrived." Kay believes that "this shift has not only led to a sharp contraction in Yuga Labs' royalty revenue but has also resulted in a fundamental reconfiguration of the NFT market."

ChainCatcher previously reported that Yuga Labs announced a restructuring last week to focus on core matters.