Jack Butcher. The man, the myth, the Visualize Value t-shirt wearer. He’s created an unstoppable brand on the bedrock of clarity, simplicity and a deadly, crystal-clear awareness of the current state of the internet. When he speaks about NFTs, people listen. And when he states, “You’re getting paid on churn,” in reference to NFT royalties, it can be tempting to further stamp approval. But is it the whole story? I think not.
Butcher's perspective, forged in the fires of Western digital entrepreneurship, often overlooks a critical piece of the puzzle: the vastly different realities of artists in emerging markets, specifically Southeast Asia. To grasp why royalties are so important, you must take a step back from the narrow Silicon Valley perspective.
Royalties: Southeast Asia's Creative Lifeline?
Building a career as an artist can be extremely daunting. Funding traditional galleries is practically impossible, galleries are hard to come by, and the international art market feels a million miles away. That’s the sad truth for many skilled creators across Southeast Asia. They don’t have the luxury of counting on wide established networks or even venture capital. For them, NFT royalties aren’t like “getting paid on churn”—they’re frequently the literal lifeblood.
Think of it like this: in the West, we have a well-developed financial ecosystem for supporting artists – grants, patrons, loans. In Southeast Asia, that ecosystem is relatively new. Royalties help make up that difference, acting as an important safety net. They provide artists the ability to reinvest in their craft, support their families, and establish sustainable careers. Without royalties, many of these artists would be forced to abandon their passion and seek more stable, albeit less fulfilling, employment.
I am not here to make the case that royalties are an ideal, or even better, system. Butcher’s not wrong; they can encourage you to pursue market trends and prioritize trading volume instead of just making art. But for artists living in Southeast Asia, the advantages come to far outweigh the disadvantages. It's about survival, not just optimization.
Beyond the Algorithm: Human Connection
Butcher's success is built on understanding the internet's power. He came across Naval Ravikant’s “How to Get Rich (without getting lucky)” twitter thread and illustrated it, breaking down non-intuitive concepts into relatable ideas. He understands leverage. Leverage is not only found in code and algorithms; it’s found in people. It's about connection.
NFT royalties help create a more personal relationship between collectors and creators. It’s a unique kind of sustained support, a renewed vote of confidence that lasts long past the original purchase. On the ground, this connection is most critical in Southeast Asia, where community is often times everything. Royalties give artists the ability to build relationships with their collectors. This relationship creates a powerful sense of connection, ownership, and investment in the artist’s success.
It doesn’t always matter if the money doesn’t come with a major signal attached, that’s not true of the time. A royalty payment says, "I believe in your work, and I want to see you continue creating." That signal can be a force for tremendous good. It’s a tremendous boon for musicians at the early career stage, who have no foundation established with traditional institutions.
Leveling the Playing Field Matters!
One of the most exciting things about NFTs is the way they can help democratize access to the art world. Now, anyone with an internet connection can mint and sell their work. That potential is ruined if royalties are repealed. Without royalties, the economic playing field is tipped even further in favor of established artists and wealthy collectors.
Butcher says, "The artists who need royalties the most rarely get them." He's right, to a degree. Indeed, the power law is alive and well in the NFT space as well. It does not follow that we should ditch royalties altogether. Rather, we need to work toward building better, smarter systems that help royalty payments reach the right hands more efficiently.
This is where we all have to get creative. Maybe instead we can figure out how to develop decentralized royalty protocols in ways that help artists from developing markets. Perhaps we could form DAOs that pool money together directly to subsidize artists who can’t afford to pay their bills. The possibilities are endless. Yet the first step is recognizing that the system we have now is failing all but a few lucky people.
We should not lose sight that NFTs can be used for much more than speculative investment. They’re a tool for democratizing creator access and developing a more equitable digital economy. By backing royalties, you help to uplift artists from Southeast Asia and other developing markets. Acting united, we can give them the best possible shot at success.
| Feature | Current NFT Landscape | SEA-Focused Royalty Model |
|---|---|---|
| Royalty Distribution | Often skewed towards top artists | Prioritizes emerging SEA artists |
| Funding Sources | Primarily market-driven | Grants, community support, royalties |
| Community Focus | Varies | Strong emphasis on local community |
Please, let’s take a bigger view and listen to the voices that are too rarely heard. If we make these changes now, together we can ensure that Web3 is an authentic reflection of our world’s incredible diversity and creativity. Hopefully, we can avoid throwing the baby out with the bathwater. When included intentionally, royalties have the potential to be a force for good. Let's make it happen.
It's time to widen our lens, to listen to the voices that are often unheard, and to build a Web3 that truly reflects the diversity and creativity of the world. Let's not throw the baby out with the bathwater. Royalties, when implemented thoughtfully, can be a powerful force for good. Let's make it happen.
