Roblox allows creators to make and sell digital items, but are they NFTs?

POPULAR POST

My Journey from Classroom to Crypto

Editor's Note: I "met" TP online. Whether it was on Twitter or a Discord group, I am remiss for details. But such a meeting...

The Largest Web3 Game by DAU, Pixels, Announces Chapter...

The Largest Web3 Game, Pixels, Announces Chapter 2 and Sets Foundation For Creating an Ecosystem of Games

Klaytn and Finschia unveil Kaia blockchain in the Philippines

Klaytn and Finschia unveil Kaia blockchain in the Philippines

Ragnarok: Monster World teases Nyang Kit NFT Mint

In April, Ragnarok: Monster World joined the Ronin movement. Ragnarok is more than a game: it’s a billion-dollar transmedia IP that has amassed over...

CryptoBilis presents ‘Bitcoin Pizza Day 2024’ in collaboration with...

An event to bring to-gather all fragmented cryptocurrency communities in the Philippines under one roof.

Olympus acceleration platform opens global launchpad for Filipino Web3...

The DFINITY Foundation (DFINITY), a Swiss not-for-profit research and development organization and key contributor to the Internet Computer Protocol (ICP) blockchain, has announced the launch of the Olympus, the first decentralized, on-chain global acceleration platform. 

Online gaming platform Roblox recently rolled out a new feature that will allow creators to make and sell digital items in limited quantities.

According to a post in Roblox’ developer forum, creators who are part of the platform’s UGC (user generated content) Program now have the ability to create “Limiteds.”

“With Limiteds, creators can specify the quantity of their creations giving them control over their scarcity,” read the post.

“Limiteds can also be resold. Therefore, in addition to what creators currently earn from creating and selling, creators will also benefit from a 10 percent original creator payout every time the item is resold,” it added.

If this sounds familiar, it’s because “Limiteds” seem uncannily familiar with NFTs – those digital assets that have gained significant popularity in recent years.

But there’s a major difference, as noted by Jay Peters in an article on The Verge: “Limiteds are not blockchain-based in any way; they’re Roblox-exclusive items that can only be purchased with the in-game Robux currency, which you buy with real money.”

Sander Lutz, in an article on Decrypt, adds: “Roblox Limiteds do not live on the blockchain. Instead, like other items previously issued within the massive gaming ecosystem in unlimited amounts, they live and die within Roblox’s internal gameplay. Users can only access Roblox-issued virtual assets within the game, while playing it.”

So, what makes “Limiteds” different from the items that UGC Program creators are already allowed to create and sell? 

In addition to the limit a creator can set on the number of copies of an item that can be sold, they also get a cut every time it is resold – a new economic environment within the gaming platform.

“We are developing more ways for creators to innovate and earn as we build towards our vision of a community-driven Marketplace. Adding scarcity to our Marketplace is a key element of creating healthy marketplace dynamics that benefit creators, buyers and sellers alike,” Roblox said.

To prevent creators from saturating the market or selling low-quality items, the platform said there will be an upfront payment due before “Limited” items are published.

“This payment is unique to Limiteds and is based upon the quantity being published and the type of asset being uploaded. When an item is sold, the creator will get this upfront payment back in proportion to the quantity of items sold. This additional payout comes out of Roblox’s platform share of 30 percent,” it said.

Meaning, creators stand to lose their upfront payment if the “Limited” items that they made are not sold.

Currently, the share of earnings for the original sale of a limited item are as follows: 30 percent for the creator, 40 percent for the seller or distributor and 30 percent for the platform (minus the upfront payment to be credited back to the creator).

Roblox also reminded creators of existing prohibitions, including the creation of items that are “overly similar” to existing items, republishing of items as a Limited items and copying an item from Roblox or another creator.

“If creators violate these guidelines, their upfront payment is not refunded and we reserve the right to remove the copied item from our Marketplace or remove the creator from the UGC Program,” the platform warned.

Subscribe to our newsletter

Its easy to be smart about crypto, allow us to send you weekly updates on digital assets, crypto, NFTs and fintech.

WANT TO KNOW MORE?

The Largest Web3 Game by DAU, Pixels, Announces Chapter 2 and...

The Largest Web3 Game, Pixels, Announces Chapter 2 and Sets Foundation For Creating an Ecosystem of Games

Klaytn and Finschia unveil Kaia blockchain in the Philippines

Klaytn and Finschia unveil Kaia blockchain in the Philippines

CryptoBilis presents ‘Bitcoin Pizza Day 2024’ in collaboration with Satoshi Labs...

An event to bring to-gather all fragmented cryptocurrency communities in the Philippines under one roof.

Olympus acceleration platform opens global launchpad for Filipino Web3 startups 

The DFINITY Foundation (DFINITY), a Swiss not-for-profit research and development organization and key contributor to the Internet Computer Protocol (ICP) blockchain, has announced the launch of the Olympus, the first decentralized, on-chain global acceleration platform.