CryptoPunks and Yuga Labs: the backlash from the community and the renewal proposals for the alleged sale of the IP

Yuga Labs faces criticism for alleged intentions to sell the IP of CryptoPunks. The NFT community is divided between concerns and innovative proposals, such as a DAO, to ensure a sustainable future for the historic digital collection.

Let’s see all the details in this article. 

Rumors of selling the CryptoPunks IP spark debates and tensions in the community

The news of a possible sale of the CryptoPunks IP by Yuga Labs has sparked a heated debate in the NFT community.

This backlash highlights the discontent of many enthusiasts, who see in the acquisition by Yuga Labs a controversial change of direction for one of the most iconic projects in the sector.

The debate began on January 14, when the Azuki researcher, Wale.moca, shared on X information that Yuga Labs might be considering selling the intellectual property rights of CryptoPunks.

Although Yuga Labs has not confirmed such plans, the statements have raised doubts among the members of the community.

Greg Solano, co-founder of Yuga Labs, directly addressed the rumors, emphasizing that the company would never make a decision that could harm the legacy of CryptoPunks:

“My priority is NFTs and their cultural value,” stated Solano, reassuring fans about the intention to preserve the integrity of the project.

Despite the reassurances, the management of the IP of CryptoPunks by Yuga Labs has often been criticized by the community. 

Some members, like the collector Adam Smoot, have expressed frustration over the lack of a clear direction, while others, like StarPlatinum, have noted a loss of identity since the project was acquired in 2022.

A DAO for the future of CryptoPunks?

Among the proposals to relaunch the project, the idea of creating a DAO (decentralized autonomous organization) is gaining support. 

Avichal Garg, managing partner of Electric Capital, suggested transferring the IP of CryptoPunks to the community through a DAO, funded by a token sale.

Garg has proposed that the funds raised be used to promote the CryptoPunks through licenses, museum exhibitions, and branding collaborations.

In this model, the owners of NFT would retain the rights to their specific assets, while the revenues generated by the DAO would be distributed among the token holders.

This view has found support from influential figures such as Matt Hougan, chief investment officer of Bitwise, who has called Garg’s approach a promising step to ensure the sustainability of the project.

Despite the turmoil, the CryptoPunks market remains lively. In the last 24 hours, 16 CryptoPunks have been sold for a total of 676 ETH, equivalent to about 2.18 million dollars.

The minimum price of the collection is currently at 40 ETH (approximately 132,804 dollars), consolidating its position as the largest NFT collection by market capitalization, with a value of 1.3 billion dollars.

Other collections are trying to bridge the gap. Pudgy Penguins follows with a market capitalization of 706.9 million dollars and a floor price of 23.9 ETH. 

On the other hand, the Bored Ape Yacht Club, another flagship project of Yuga Labs, ranks third with a floor price of 15.4 ETH and a market capitalization of 510 million dollars.

The return to the origins

For many members of the community, the idea of transferring the IP of CryptoPunks to a DAO represents a hope to preserve the historical and cultural value of the project. 

According to the collector Dheeraj Shah, Yuga Labs’ decision to “leave CryptoPunks alone” after the initial acquisition was appreciated, in stark contrast to the approach taken for the Bored Ape Yacht Club.

Shah also highlighted that a sale of the IP could transform CryptoPunks into a piece of digital history. A concept far from the utility logics that dominate other NFT projects.

In other words, the story of CryptoPunks highlights the complexities of managing a cultural project in the context of a rapidly evolving market. 

While Yuga Labs seeks to balance economic needs and historical integrity, the community continues to play a crucial role in shaping the future of the collection.

The idea of a DAO offers an interesting perspective. Returning control to the community could indeed not only ensure the sustainability of CryptoPunks but also redefine the role of NFTs as instruments of decentralized innovation.

With the debate still open, the future of CryptoPunks could become an emblematic example of how to manage the transition between technological innovation and cultural identity.