Sebastian Sinclair

Mobile NFT platform Floor will let users buy NFTs in-app, but to do so, it intends to absorb the 30% fees charged by Apple and Google.



Floor, like other NFT marketplace apps, wants to provide a single venue in which to view, trade and collect NFTs.&nbsp;Apple updated its policy last September to allow NFTs to be bought and sold through apps listed on its Store, though it came with a <a href="https://blockworks.co/news/apple-allows-nft-sales-on-its-app-store-but-theres-a-catch" target="_blank" rel="noreferrer noopener">significant catch</a>.&nbsp;



As is the case with non-crypto apps, the tech giant demands a 30% cut on in-app purchases from developers who make more than $1 million annually through its store and 15% for those making less.



Google has a <a href="https://blockworks.co/news/google-play-eases-restrictions-blockchain-apps" target="_blank" rel="noreferrer noopener">similar</a> fee structure in place. Approved app categories on Google’s Play Store now include games that offer NFTs as rewards, as well as crypto exchanges and wallets.&nbsp;



NFT marketplaces have broadly avoided the fees altogether simply by not allowing in-app purchases. OpenSea, for example, only lets users view their own NFTs and browse those offered on the platform. Its app directs users to its website to actually buy and sell NFTs.



Floor’s founders — former executives at <a href="https://blockworks.co/news/robinhood-crypto-24-hours" target="_blank" rel="noreferrer noopener">Robinhood</a> and <a href="https://blockworks.co/news/paypal-venmo-lack-fdic-insurance" target="_blank" rel="noreferrer noopener">Venmo</a> — hope the ability to buy NFTs directly app will set it apart from the competition.



“Marketplaces like OpenSea can’t operate on mobile today,” co-founder Chris Maddern told Blockworks in an interview. “The ‘marketplace’ exemption doesn’t apply to NFTs and 30% on a peer-to-peer purchase is unviable.”



Though when it comes to primary sales (from artist to collector), Floor believes the remaining 70% will be enough for its business to remain in the black.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/07/image-1.jpg?w=1024&amp;h=1024" alt="" class="wp-image-62430" width="840" height="429" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/07/image-1.jpg?w=1280 1280w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/image-1.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/image-1.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/image-1.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/image-1.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/image-1.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/image-1.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2023/07/image-1.jpg?w=80 80w" sizes="auto, (max-width: 840px) 100vw, 840px" /><figcaption class="wp-element-caption">What in-app purchases look like on Floor</figcaption></figure>



Floor raised $8 million in a Series A in June last year, in a round participated by Crypto.com, Eberg Capital and 8th Man Ventures, among others. The name refers to NFT &#8220;floor prices,&#8221; the lowest value of tokens in a particular collection.



The firm hopes its absorption of the 30% fee leads to an industry-wide push to reduce Apple and Google&#8217;s take.



In a statement, Floor said it is working with 10 prominent Web3 artists including Vinnie Hager to launch weekly drops available through in-app buys.&nbsp;



Floor says the app, launched on both Apple and Google app stores last year, has around 25,000 users. It features support for NFTs across Ethereum, Polygon and Solana. More support for other networks is expected in the coming months.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

App Store

Floor opens NFT buys in-app, will absorb 30% fees from Apple and Google

James Cirrone

Decentralized social media platform Damus could be allowed to stay on Apple’s App Store, following Tuesday reports of its impending demise in 14 days.&nbsp;



Apple originally told Damus it would have to adjust its bitcoin tipping feature, zaps, to be compliant with app store guidelines. Specifically, Apple claimed zaps could enable users to sell digital content outside of Apple’s in-app purchases mechanism, violating the guidelines. It’s important to note that Apple takes a 30% cut on most in-app purchases, per <a href="https://www.statista.com/statistics/975776/revenue-split-leading-digital-content-store-worldwide/">data</a> compiled by Statista.



After Damus’ original <a href="https://twitter.com/damusapp/status/1668529709867495424">tweet</a> showing Apple’s correspondence about the upcoming delisting went viral with the <a href="https://twitter.com/jack/status/1668648607661056000">help</a> of Twitter founder Jack Dorsey, Damus tweeted again, saying Apple got in contact and scheduled a call.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Apple has contacted us and scheduled a call to discuss the role of zaps in more detail. Will keep y’all posted.&mdash; Damus⚡️ (@damusapp) <a href="https://twitter.com/damusapp/status/1668660013248786440?ref_src=twsrc%5Etfw">June 13, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Apple confirmed that it spoke to Damus and hashed out an understanding about how zaps can survive on the platform.



“We have spoken to this developer to explain how they can resolve this issue, and confirmed they can address this issue in their next update,” Apple told Blockworks.


<div class="wp-block-image">
<figure class="alignright size-medium"><img loading="lazy" decoding="async" width="1244" height="782" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/06/Screenshot-2023-06-13-at-3.23.10-PM.png?w=300&amp;h=300" alt="" class="wp-image-58855" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/06/Screenshot-2023-06-13-at-3.23.10-PM.png?w=1244 1244w, https://blockworks-co.imgix.net/wp-content/uploads/2023/06/Screenshot-2023-06-13-at-3.23.10-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/06/Screenshot-2023-06-13-at-3.23.10-PM.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/06/Screenshot-2023-06-13-at-3.23.10-PM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/06/Screenshot-2023-06-13-at-3.23.10-PM.png?w=409 409w, https://blockworks-co.imgix.net/wp-content/uploads/2023/06/Screenshot-2023-06-13-at-3.23.10-PM.png?w=415 415w, https://blockworks-co.imgix.net/wp-content/uploads/2023/06/Screenshot-2023-06-13-at-3.23.10-PM.png?w=348 348w, https://blockworks-co.imgix.net/wp-content/uploads/2023/06/Screenshot-2023-06-13-at-3.23.10-PM.png?w=80 80w" sizes="auto, (max-width: 1244px) 100vw, 1244px" /></figure></div>


Damus creator William Casarin also posted on the Damus app, explaining how zaps will change going forward. Currently, users can tip others through a lightning button at the bottom of their notes (Damus’ equivalent to tweets). According to Casarin, Apple wants that feature gone, but it will allow Damus users to tip one another on their profiles.



“Damus can keep the zap button on the profile but not notes. It is considered ‘selling digital content’ if it&#8217;s on notes,” Casarin wrote at 2:04 pm ET.&nbsp;



Yet another Tweet from Damus at 2:41 pm ET said that this change “cripples” the platform.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Damus has to remove the zap button on posts because this is considered “selling digital content”. Only zaps on profiles are allowed. This cripples damus pretty bad, but you can still zap at least 😕&mdash; Damus⚡️ (@damusapp) <a href="https://twitter.com/damusapp/status/1668690038521995285?ref_src=twsrc%5Etfw">June 13, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Blockworks reached out to Apple but didn’t receive an immediate response.



Damus bills itself as a more private and secure Twitter. It uses end-to-end encrypted private messaging, and accounts don’t require a name, phone number or email, according to Damus’ <a href="https://apps.apple.com/us/app/damus/id1628663131">page</a> on the App Store.



Updated June 13, 2023 at 5:40 pm ET: Added comment from Apple.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

Damus must tweak BTC tipping feature to stay on App Store, social platform’s creator says

Ornella Hernandez

Apple Inc. reportedly plans to allow alternative app stores on its iPhones and iPads next year in response to looming regulatory changes in the European Union. 



The move, <a href="https://www.bloomberg.com/news/articles/2022-12-13/will-apple-allow-users-to-install-third-party-app-stores-sideload-in-europe" target="_blank" rel="noreferrer noopener">reported</a> by Bloomberg, would let iOS users download third-party software to their devices, bypassing Apple’s up-to-30% commission on in-app purchases — a policy that also affected NFT-related apps.



In September, the tech giant <a href="https://blockworks.co/news/apple-allows-nft-sales-on-its-app-store-but-theres-a-catch" target="_blank" rel="noreferrer noopener">enabled developers of current apps to sell non-fungible tokens in-app</a> and new apps to trade NFTs within them. 



Those developers who made over $1 million annually through the ‌App Store‌ were subject to Apple taking a 30% cut, while developers making less than that paide 15%. Additionally, Apple made it so that NFT-related transactions on an iPhone or iPad could only be made in US dollars and not cryptocurrency.



In less than a month, Apple ended up <a href="https://blockworks.co/news/apple-takes-bite-out-of-app-store-nfts-in-hunt-for-revenue" target="_blank" rel="noreferrer noopener">backtracking on its Web3 policy and restricting content and functions</a> associated with license keys, augmented reality markers, QR codes, cryptocurrencies and cryptocurrency wallets. NFT-related functions in-app, such as sales, mints, listings or transfers are still allowed.



The new shift for Apple to support external apps from third-party marketplaces may benefit Web3 developers and expand the use of NFT-related applications and mobile crypto payments.&nbsp;



Apple would be complying with Europe Union’s (EU) Digital Markets Act (DMA), an antitrust legislation approved by the EU parliament in July. While the new law takes effect in early 2023, companies aren’t required to fully comply until 2024.&nbsp;



The company still has to decide whether to allow third-party developers to use their own payments infrastructure or make them use Apple’s payments setup, per Bloomberg.



Once in effect, the policy change would likely be featured in Apple’s iOS 17 software update, scheduled for next fall.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

App Store

Newsletter

Blockworks Research