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the-creator-economy-web2-vs-web3
Blog

The Future of Moral Rights in a World of Programmable Art

Web2 platforms fail to protect the non-commercial rights of artists in the AI era. This analysis argues that smart contracts offer the first viable mechanism to encode and enforce moral rights like attribution and integrity, creating a new paradigm for programmable, ethical creation.

introduction
THE CONTRADICTION

Introduction

Programmable art on blockchains like Ethereum and Solana creates a fundamental conflict between immutable code and mutable creator rights.

On-chain art is immutable code. The core value proposition of NFTs on platforms like Art Blocks is their permanence and verifiability, enforced by the blockchain's state machine.

Moral rights are inherently mutable. An artist's right to attribution or to object to a work's misuse is a social construct that evolves with context, reputation, and legal frameworks.

Smart contracts cannot interpret context. A contract on Ethereum or a program on Solana executes logic, not ethics; it lacks the off-chain social layer where moral rights exist.

Evidence: The 2022 'QQL' mint by Tyler Hobbs and Dandelion Wist demonstrated programmable art's power but also its rigidity—the generative algorithm is law, leaving no room for post-hoc ethical overrides.

thesis-statement
THE CONTRADICTION

Thesis Statement

Programmable art on blockchains like Ethereum and Solana creates an inherent conflict between immutable code and mutable moral rights.

Smart contracts are immutable law. On-chain art, governed by code on Ethereum or Solana, executes predefined rules without exception, directly contradicting the flexible, human-centric legal doctrine of moral rights.

Programmability enables perpetual royalties. Protocols like Art Blocks and Manifold use immutable smart contracts to enforce creator royalties, a form of economic moral right that traditional IP law fails to guarantee in secondary markets.

The conflict is jurisdictional. On-chain enforcement via code (e.g., EIP-2981) creates a parallel legal system that supersedes off-chain copyright courts, forcing a redefinition of authorship and attribution for assets like CryptoPunks.

Evidence: The 2022 shift to optional royalties on major NFT marketplaces like Blur and OpenSea, which circumvented immutable contract logic via off-chain order books, proves that code alone cannot enforce norms without market consensus.

market-context
THE DATA

Market Context: The Attribution Vacuum

Current NFT standards fail to preserve creator attribution and royalties, creating a systemic value leak.

ERC-721 and ERC-1155 are broken. They encode creator addresses as mutable metadata, not immutable contract logic. This allows marketplaces like Blur to bypass royalty enforcement, directly transferring value from creators to traders.

Programmability creates a moral paradox. Smart contracts enable perpetual, automated revenue streams, but the legal concept of inalienable moral rights conflicts with code's permissionless composability. A platform like Manifold can enforce rules, but a forked contract on a new chain cannot.

The vacuum is a $500M+ annual leak. Creator royalties on Ethereum peaked at over $1.9B in 2022. The shift to optional royalties via Seaport and aggressive marketplace competition has slashed this, demonstrating that economic incentives trump social contracts in a free market.

Evidence: Yuga Labs' enforced 5% royalty on Sewer Pass NFTs required a custom, non-standard contract. This proves that attribution and economic rights require protocol-level primitives, not marketplace goodwill.

THE INFRASTRUCTURE LENS

Web2 vs. Web3 Moral Rights Enforcement: A Feature Matrix

A technical comparison of how moral rights (attribution, integrity) are enforced across centralized platforms and decentralized protocols.

Enforcement FeatureWeb2 Centralized Platforms (e.g., Instagram, Spotify)Web3 On-Chain Protocols (e.g., Ethereum, Solana)Web3 Off-Chain Standards (e.g., IPFS, Arweave)

Attribution Enforcement Mechanism

Platform TOS & Manual Reporting

Immutable Creator Field in NFT Smart Contract (e.g., ERC-721)

Content-Addressed Metadata (CID) Linking to Creator Wallet

Integrity Enforcement Mechanism

Platform can alter/remove content at will

Hash-locked On-Chain Provenance (Immutable after mint)

Permanently Stored, Tamper-Evident File (via Arweave, Filecoin)

Jurisdictional Reach

Limited to Platform's User Base & Geoblocks

Global, Permissionless Network Access

Global, Censorship-Resistant Access

Dispute Resolution

Centralized Platform as Arbitrator

On-Chain Governance (e.g., DAO vote) or Code is Law

Community-Driven (e.g., Decentralized Court like Kleros)

Royalty Enforcement for Resales

Varies by Platform; Often 0%

Programmable via Smart Contract (e.g., EIP-2981); ~5-10% Standard

Not Applicable (Storage layer only)

Cost of Enforcement for Creator

$0 (but relies on platform policy)

Gas Fees for Minting & Royalty Logic; ~$50-500+

One-Time Storage Fee; ~$0.50-5 per MB

Permanence of Record

At Platform's Discretion; Ephemeral

Indefinite (contingent on blockchain liveness)

Indefinite (guaranteed by crypto-economic incentives)

Attack Surface for Censorship

Single Point of Failure (Platform Servers)

51% Attack on Consensus Layer

Content Pruning by Storage Node Operators

deep-dive
THE CODE LAYER

Deep Dive: The Anatomy of a Programmable Moral Right

Programmable moral rights are smart contracts that encode creator stipulations, transforming subjective legal principles into deterministic on-chain logic.

The core is a smart contract that defines and enforces creator stipulations. This moves moral rights from subjective legal interpretation to deterministic on-chain logic, executed by platforms like Ethereum or Solana.

Standardization requires new token formats like ERC-721C or SPL-404. These standards embed royalty and attribution rules directly into the token's transfer logic, making enforcement a protocol-level feature, not a marketplace policy.

Enforcement relies on a decentralized network of validators or watchers. Projects like Story Protocol or Aragon provide the infrastructure to monitor for violations and trigger pre-defined penalties or reversals automatically.

Evidence: The failure of optional creator fees on OpenSea proves that marketplace-enforced rights are fragile. Programmable rights shift the burden of enforcement from corporate policy to cryptographic guarantee.

protocol-spotlight
THE FUTURE OF MORAL RIGHTS

Protocol Spotlight: Early Builders

On-chain art dissolves traditional copyright, forcing a rebuild of creator attribution and control from first principles.

01

The Problem: Irrevocable Forks & Attribution Decay

NFTs are just pointers; the underlying art can be forked infinitely, eroding provenance. Art Blocks and Fidenza demonstrate value in verifiable on-chain generation, but most PFPs are mutable links.\n- Scarcity is a social construct easily broken by right-click-save.\n- Royalty enforcement is a losing battle on secondary markets like Blur.

0%
Royalty Compliance
∞
Possible Forks
02

The Solution: Programmable Attribution via Smart Contracts

Moral rights must be hardcoded. Manifold's Royalty Registry and 0xSplits show how logic can be embedded. The future is persistent, on-chain attribution layers that follow the asset.\n- Creator-determined splits for all derivatives and remixes.\n- Verifiable provenance through immutable code, not platform policy.

100%
Code-Enforced
Auto
Royalty Routing
03

The Arbiter: Decentralized Curation & Reputation

Who decides what constitutes a 'derivative' or 'plagiarism'? Platforms like Foundation and SuperRare act as centralized curators. The endgame is a decentralized reputation graph (e.g., CyberConnect, Lens Protocol) where community signal validates authentic attribution.\n- Curation markets incentivize accurate provenance tagging.\n- Social graphs become the new copyright office.

DAO-Based
Governance
Graph
Reputation Layer
04

The New Asset: Verifiable Process & Iteration

True value shifts from static output to verifiable creative process. Platforms like Zora and Highlight focus on story and creation history. Future art NFTs will bundle timestamped sketches, code commits, and rendering logs as the true scarce asset.\n- Immutable creative ledger as the primary NFT.\n- Derivatives pay royalties to the process, not just the final image.

On-Chain
Process Proof
Multi-Asset
NFT Bundles
05

The Legal Layer: Ricardian Contracts & Real-World Enforcement

On-chain logic must interface with off-chain law. Projects like OpenLaw and Kleros pioneer Ricardian contracts that are both machine-executable and legally cognizable. This bridges the gap between code-is-law and court-is-law.\n- Jurisdiction-aware clauses encoded in NFT metadata.\n- Decentralized arbitration (e.g., Kleros) for dispute resolution.

Legally Binding
Smart Clauses
Kleros
Arbiter
06

The Endgame: Dynamic Moral Rights as a Service

Moral rights become a modular, composable primitive. Imagine an intent-based system where creators set policies (e.g., 'allow non-commercial remixes, charge 5% for commercial') and protocols like Across or LayerZero execute cross-chain attribution tracking. This is UniswapX for IP.\n- Intent-centric IP management.\n- Cross-chain royalty aggregation as a base layer service.

Modular
IP Stack
Intent-Based
Architecture
counter-argument
THE DISTINCTION

Counter-Argument: Is This Just Digital Rights Management (DRM)?

Programmable moral rights invert the DRM model by empowering creators, not restricting users.

The core distinction is agency. Traditional DRM is a restrictive, top-down control system imposed by corporations. On-chain moral rights, using standards like ERC-721 or ERC-1155, embed creator-defined rules into the asset's immutable logic. The creator, not an intermediary, sets the terms.

DRM restricts usage; smart contracts enable provenance. DRM focuses on preventing copying. On-chain systems like Verifiable Credentials or EIP-5218 (Royalty Enforcement) focus on transparently tracking and rewarding the chain of attribution. The goal is not to stop sharing but to make the creator's rights legible and enforceable.

The enforcement mechanism is inverted. DRM relies on centralized gatekeepers (e.g., app stores, platforms) to police rules. Programmable rights are enforced by decentralized consensus and automated smart contract logic. Violations, like unauthorized modifications, are rendered technically impossible or socially verifiable on-chain.

Evidence: The Art Blocks platform demonstrates this. Each generative artwork's code and provenance are immutably stored on-chain. The platform does not 'prevent' screenshots, but the canonical, verifiable original and its creator's perpetual attribution are cryptographically guaranteed, creating a new form of scarcity and authenticity.

risk-analysis
PROGRAMMABLE ART

Risk Analysis: What Could Go Wrong?

The immutable, composable nature of on-chain art creates novel legal and technical vulnerabilities for the creator's moral rights.

01

The Immutable Derivative Problem

On-chain art is a composable asset. A malicious actor can permanently fork, modify, and re-mint a creator's work as a new NFT, creating a permanent, unauthorized derivative. This directly violates the right of integrity. Smart contracts cannot inherently distinguish between homage and theft.

  • Permanent Infringement: Once minted, the unauthorized derivative lives forever on-chain.
  • Legal Gray Area: Jurisdictional conflict between immutable code and mutable copyright law.
  • Platform Reliance: Enforcement depends on centralized NFT marketplaces (OpenSea, Blur) to delist, not the protocol.
100%
Permanent
0
Native Protections
02

The Automated Royalty Sabotage

Programmable art often relies on on-chain royalty enforcement via smart contract hooks. These can be technically circumvented through direct contract calls, marketplace bypasses, or wrapper contracts. The result is the erosion of the right of attribution and remuneration.

  • Fee Sniping: MEV bots can front-run sales to strip royalties, reducing creator income by >90% on some chains.
  • Protocol Fragmentation: Lack of universal standard (EIP-2981 vs. custom implementations) creates exploitable gaps.
  • Economic Attack: Makes sustainable creative careers on-chain financially non-viable.
>90%
Revenue Loss
EIP-2981
Fragile Standard
03

The Oracle Dictatorship

Any system designed to protect moral rights (e.g., takedown mechanisms, authenticity verification) requires an oracle to adjudicate disputes. This centralizes ultimate power, creating a single point of failure and censorship.

  • Centralized Failure: The oracle (be it a DAO, multisig, or legal entity) becomes the de facto copyright court.
  • Censorship Vector: A malicious or coerced oracle can falsely attribute or de-legitimize original works.
  • Contradicts Ethos: Replaces legal due process with potentially opaque, gameable on-chain governance.
1
Point of Failure
DAO Risk
Governance Attack
04

The Irrevocable License Trap

Many NFT licenses (e.g., CC0) are irrevocable once granted. A creator cannot "take back" rights if their work is used by a hate group or for propaganda, violating their moral right of withdrawal. The blockchain's permanence turns a legal shield into a cage.

  • No Recall Function: Code is law, and the law has no clause for moral repugnance.
  • Reputational Harm: Artists are permanently associated with downstream misuse they cannot stop.
  • Pre-emptive Chilling: May deter serious artists from minting significant works on-chain.
CC0
Common License
0%
Recourse
future-outlook
THE ENFORCEMENT

Future Outlook: The Next 24 Months

Programmable art will force a legal and technical reckoning for moral rights, shifting enforcement from courts to code.

On-chain enforcement mechanisms become the primary battleground. Courts are too slow for the blockchain's pace. Projects like Ethereum Attestation Service (EAS) and Verifiable Credentials will encode creator stipulations directly into NFT metadata, creating programmable provenance that wallets and marketplaces must respect.

Standardization creates winners and losers. A dominant standard like ERC-721C for on-chain royalties will emerge, but it fragments the market. Protocols like Manifold that enable flexible, creator-set rules will outcompete rigid, platform-level mandates, forcing a split between compliant and non-compliant marketplaces.

The attribution wars begin. Automated derivative detection via services like OptiLayer or Story Protocol indexes will trigger smart contract penalties. This creates a new attack vector: malicious actors will spam false attribution claims to exploit bounty systems, requiring sophisticated ZK-proofs of derivation to filter noise.

Evidence: The failure of Seaport's simple royalty enforcement led to a 95% drop in creator fees on major platforms, proving that weak technical guarantees are worthless. The next standard must have slashing mechanisms.

takeaways
PROGRAMMABLE MORAL RIGHTS

Key Takeaways for Builders and Investors

Moral rights are shifting from legal abstraction to programmable primitives, creating new attack vectors and business models.

01

The Problem: Attribution is a Broken Signal

On-chain provenance tracks ownership, not authorship. This creates a trust gap where forgeries and unauthorized derivatives dilute artist value and collector confidence.

  • ~70% of NFT collections have unclear or pseudonymous founding teams.
  • Sybil attacks and copy-paste mints make authentic attribution computationally expensive.
~70%
Opaque Attribution
10k+
Copycat Mints
02

The Solution: Programmable Royalties as a Primitive

Treat moral rights as a stateful, on-chain program. This moves beyond simple fee splits to conditional and dynamic rights enforcement.

  • Dynamic Royalty Contracts can adjust rates based on secondary market volume or derivative use.
  • Composability allows integration with DAOs like FWB or PleasrDAO for collective rights management.
100%
On-Chain Enforceable
Dynamic
Pricing Logic
03

The Problem: Legal Jurisdiction vs. Code Jurisdiction

Berne Convention rights are territorial and slow. Smart contracts are global and instant. This creates a sovereignty clash where code-based enforcement may violate local laws.

  • EU's droit de suite (resale right) conflicts with immutable, global smart contract logic.
  • Platforms like OpenSea disabling royalties highlight the fragility of off-chain enforcement.
180+
Conflicting Jurisdictions
~0ms
Code Execution
04

The Solution: Zero-Knowledge Proofs of Authorship

Use cryptographic proofs to verify authorship without revealing identity or compromising privacy. This enables permissioned derivatives and anonymous credibility.

  • zkSNARKs can prove an artist's body of work without doxxing.
  • Projects like Sismo and Semaphore provide the identity layer for pseudonymous reputation.
ZK
Privacy-Preserving
Anonymous
Credibility
05

The Problem: Static NFTs are Dead Capital

A minted artwork is a frozen asset. Its moral rights and economic potential cannot be recomposed or fractionalized post-creation, limiting liquidity and collaboration.

  • $26B NFT market is largely illiquid, single-owner assets.
  • No native mechanism for artists to participate in derivative ecosystem value.
$26B
Illiquid Market
Static
Asset Class
06

The Solution: Modular Rights & Derivative Factories

Decompose moral rights into tradable, composable modules (attribution, integrity, adaptation). Enable automated derivative markets via smart contract templates.

  • ERC-7641 (Native Stewardship) allows bundling and unbundling of rights.
  • Platforms like Manifold and Zora can become factories for permissioned remix culture.
Modular
Rights Stack
Automated
Derivative Markets
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