Yuga Labs' Sewer Pass NFT Launch Nets Over $6 Million in Sales, Sparks Creator Royalty Debate

Yuga Labs' newly released Sewer Passes for their Bored Ape Yacht Club ecosystem generated over $6 million in sales within hours, with holders of Bored Ape or Mutant Ape NFTs eligible to claim free Sewer Passes. The Passes, which grant access to a skill-based game called Dookey Dash and contribute to a broader narrative experience, were divided into four tiers with varying prices on the secondary market. Notably, the smart contract for the Sewer Passes includes a blocklist of certain wallet addresses, including those of major NFT marketplaces, reflecting Yuga Labs' commitment to enforcing creator royalties.

Yuga Labs' Sewer Pass NFT Launch Nets Over $6 Million in Sales

New York, New York - January 18, 2023 - Yuga Labs, the creators of the renowned Bored Ape Yacht Club (BAYC) NFT collection, has experienced an overwhelming response to its latest non-fungible token (NFT) project, the Sewer Passes. Within hours of their release on Wednesday, the Sewer Passes generated over 4,000 ETH (approximately $6.2 million) in total sales volume, solidifying their position as one of the most sought-after digital collectibles in the market.

Holders of BAYC or Mutant Ape Yacht Club (MAYC) NFTs were eligible to claim a complimentary Sewer Pass on Wednesday, which serves as the gateway to Dookey Dash, a skill-based mini-game. Sewer Pass holders, whether acquired through minting or purchased on the secondary market, can participate in Dookey Dash from January 19 to February 8. Scores accumulated during gameplay will contribute to a broader narrative experience known as "Chapter 1," set to unfold at a future date.

The Sewer Passes were categorized into four tiers, determined by whether the BAYC or MAYC NFT holder also possessed a Bored Ape Kennel Club NFT. As of this writing, the floor price for a Tier 1 Sewer Pass on OpenSea, a popular secondary NFT marketplace, is 1.3 ETH (approximately $2,000), while Tier 4 passes have reached a staggering 420 ETH (approximately $640,000) in value.

Bored Ape Yacht Club announced on Twitter that the official Sewer Pass collection was available for secondary trading on OpenSea. However, a notable aspect of the Sewer Passes is the inclusion of specific conditions encoded within their smart contracts, including a blocklist of particular wallet addresses. This move sparked lively discussions on Twitter, with some of the blocked addresses belonging to major secondary marketplaces such as LooksRare and NFTX.

The issue gained prominence due to its potential connection to Yuga Labs' commitment to upholding a 5% creator royalty fee on OpenSea. As per OpenSea's developer guidelines, creators can opt to enforce on-chain creator fees by incorporating a specific code into their NFT contracts, restricting NFT transactions to marketplaces that honor these fees.

LooksRare, one of the platforms affected by the blocklist, implemented an optional royalty structure in October 2022. Other notable platforms, such as X2Y2, have also adopted this approach, aligning with a broader industry trend to cater to sellers seeking the most favorable terms for NFT purchases. However, creators have vehemently opposed this shift, arguing that it undermines their ability to generate ongoing revenue from their artistic works.

In a statement to CoinDesk, a Yuga Labs spokesperson emphasized the company's unwavering support for protecting creator royalties. "We have always prioritized creators, and we firmly believe that their royalties must be safeguarded," they declared. They further stated that the Sewer Pass free claim would only be available on platforms that respect creator royalties.

Yuga Labs co-founder Wylie Aronow, also known as Gordon Goner, has been a vocal advocate for protecting creator royalties. In November 2022, he indicated that the company was exploring the use of allowlists programmed into smart contracts to determine which wallet addresses could transfer NFTs. He highlighted that externally owned accounts (EOAs), which are not commonly used by marketplaces, provide a means to differentiate transactions between private users and marketplaces.

"Embedding such mechanisms into NFT smart contracts enables creators to ensure they receive their fair share of royalties," Aronow explained.

The Sewer Pass launch is a testament to Yuga Labs' continued dominance in the NFT landscape. The overwhelming demand for these digital collectibles underscores the enduring popularity of the Bored Ape Yacht Club ecosystem and the unwavering faith of NFT enthusiasts in the company's innovative projects. As the Dookey Dash mini-game commences and the narrative experience unfolds, the Sewer Passes are poised to remain a hot commodity, further cementing Yuga Labs' position at the forefront of the NFT revolution.