Features

Inside Nifty Gateway’s Publishers Policy Controversy

BY Keisha Oleaga •

October 05, 2023

On Sept. 27, Nifty Gateway, a leading NFT marketplace platform, sent its Publishers an email outlining a significant policy change. The platform, which launched its Publisher feature in Sept. 2022 to foster a broader spectrum of creators, has now decided to raise the bar to entry.

While Nifty Gateway states that these changes aim to maintain high-quality artwork and strong market demand, it has nonetheless sparked debate within the artist community.

A Look into the New Policy

In the announcement, Nifty Gateway expressed a commitment to “the long game.” It intends to present high-quality artwork that garners trust and confidence from collectors, a sentiment it claims has been vocalized by their community over the past year. Its new criteria to evaluate Publishers hinges on market signals, with a threshold set at an average Gross Merchandise Value (GMV) of $750 per drop. Publishers who do not meet this standard have been informed they can no longer release new drops on the platform.

However, in a nod to “fairness,” any scheduled drops from these artists will remain unaffected.

The Controversy

From a business perspective, Nifty Gateway’s move can be perceived as a bid to ensure long-term sustainability. By focusing on high GMV publishers, the platform prioritizes artists with a proven track record of drawing revenue. This could theoretically stabilize and boost the platform’s profitability and reputation.

Tara Harris, head of business development and growth at Nifty Gateway, told nft now that the move was intended to “get back to Nifty Gateway’s roots and what sets us apart as a marketplace.”

She added, “While we recognize this update to our publisher program was challenging for some of our community, it’s critical for the long-term health of our marketplace that we support and encourage a balanced and vibrant ecosystem where both collector and creator can find value.”

“It’s critical for the long-term health of our marketplace that we support and encourage a balanced and vibrant ecosystem where both collector and creator can find value.”

Nifty gateway’s Tara Harris

But where does this leave emerging artists, curators, and collectors who have not yet reached the $750 GMV threshold? Critics argue that this move contradicts the very ethos of Web3, which often celebrates independent and emerging artists. By setting a monetary benchmark, Nifty Gateway might be sidelining those who are in the early stages of their artistic journey or those who cater to niche markets.

In response to Nifty Gateway’s policy change, one affected publisher, who goes by the alias Madam Selkie, expressed their deep disappointment.

“It’s regrettable that Nifty Gateway chose this avenue without dialogue,” Selkie told nft now. “Publishers who were removed were not allowed to make their case as to why they should maintain publishing privileges. We were just unfairly cut off with, frankly, very little explanation, and it seems like it’s all been done to please a handful of unhappy collectors. If NG suddenly realized it needed to do quality control of drops, it should have come up with a better solution. As it stands, they’ve decided to hurt new and rising artists by placing a blanket ban based solely on the volume of sales. I certainly hope they will reconsider their decision.”

“As it stands, they’ve decided to hurt new and rising artists by placing a blanket ban based solely on the volume of sales.”

Selkie

Evidently, this change has ruffled feathers in the artist community, which believes platforms like Nifty Gateway should uplift and empower artists of all scales. The abrupt nature of the announcement, without a phased approach or a grace period, has added to the discontent.

Numerous artists, curators, and collectors who once championed the Publishers tool have voiced their concerns and dissatisfaction following the policy shift. The change has not only affected their financial prospects but has also shaken the trust they placed in the platform. Several artists said they were taken aback by the sudden policy alteration, feeling their loyalty and commitment to Nifty Gateway were unrecognized. This discontentment underscores the broader challenges in the NFT space, where platforms must strike a delicate balance between business considerations and nurturing a thriving community of creators.

SylviePixel, an artist and community member who relied heavily on the platform, shared with nft now how the policy change had directly affected her.

“The sudden change was shocking [because] no one expected that,” she said. “I was especially shocked [because] Nifty Gateway was a special place for me [because] I used to mint my special work there, and with the money that I earned, I used to pay my house rent to finish my university. Nifty was always like a Plan B for me [because] people loved my works on there, and when I couldn’t sell on Solana, I was minting on Nifty Gateway and earning the money that I needed.”

Yomu Yakadashi is a prominent figure in the Nifty community who transitioned from an artist to a collector and became a Publisher in December 2022. They shared their perspective on the recent changes:

“Nifty has the motto of democratizing access to the entire internet… However, the artists felt a stab in the back when their access was revoked after going through curation. Nifty acted as if they weren’t the ones going after most of the artists and as if there was no curation. My conclusion is that they made a mistake and used artists as the cause of the problem of propagating ‘no quality’ art… Yes, Nifty is a private company and has its financial goals. However, it only exists for the work of artists, and I feel like this has been forgotten.”

“Yes, Nifty is a private company and has its financial goals. However, it only exists for the work of artists, and I feel like this has been forgotten.”

Yomu Yakadashi

Looking Ahead

It remains to be seen how this policy shift will play out in the long term for Nifty Gateway. Will it strengthen the platform’s position in the competitive NFT marketplace or alienate a portion of its user base?

In the past few years, we have seen platforms and policies continually evolving in the dynamic world of NFTs. OpenSea has received significant criticism from the Web3 community due to its constant policy changes around creator royalties. Ultimately, only time will tell if Nifty Gateway’s gamble pays off and reveals which platforms endure and remain firmly aligned with community values.

In the face of unexpected challenges, the resilience and optimism of artists demonstrate the unwavering spirit of the NFT community, suggesting that setbacks are merely stepping stones to new opportunities.

Artist Eka Lestienne expressed her optimism to nft now: “While I am deeply saddened by Nifty Gateway’s decision to revoke my ability, as well as that of others, to publish drops on their platform without any prior notice or discussion, I believe that this turn of events ultimately reflects more on Nifty Gateway’s loss than it does on mine.”

“I believe that this turn of events ultimately reflects more on Nifty Gateway’s loss than it does on mine.”

Eka Lestienne

She concluded, “The strength of the NFT space lies in its diversity and the inclusive spirit that has propelled it forward. As they say, when one door closes, another one opens, and I am excited to explore new horizons in the digital art space.”

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