Yuga Labs’ Sewer Pass Collection Has Limited Transfer Capabilities

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YugaLabsLogo_Black Sewer Pass

There is never a boring day in the world of non-fungible tokens. Yuga Labs recently launched its Sewer Pass contract, which blacklists wallet addresses for crucial NFT marketplaces. The implications are uncertain, although it is likely a statement by the team regarding royalties.

Sewer Pass Contract Sparks Concern

The Yuga Labs team has become synonymous with top-tier NFT collections over the year. They are behind Bored Ape Yacht Club, Mutant Ape Yacht Club, Bored Ape Kennel Club, Otherdeed for Otherside, Bored Ape Chemistry Club, Meebits, BAYC Honorary Members, and CryptoPunks. These collections top the global NFT charts in overall volume, interest, and sale prices. It is hard to envision a world in which none of these projects is the talk of the town. 

A recent collection was added to the fray called Sewer Pass. The NFT collection is designed to let holders access Yuga Labs’s Dookey Dash interactive skill-based mint from January 19, 2023, until February 8, 2023. The Sewer Passes are “tiered” based on BAYC/MAYC and BAKC holdings. As one would expect, demand for the collection is fairly high. A total of 14,629 items exist, and the collection already surpasses 7,000 ETH in volume. 

However, Sewer Pass’s smart contract is of great interest to people. It turns out the contract links to another contact deployed before the collection launched. That second contract is the “Registry” and blocks sending NFTs to addresses belonging to various NFT marketplaces. That includes Blur, LooksRare, SudoSwap, NFTX. The reason for doing so is likely due to a dispute over royalties charged by these NFT marketplaces. However, the team did not block X2Y2, a marketplace for which Yuga Labs didn’t set a royalty fee. 

Others comment how this is not a devious move by Yuga Labs themselves but rather a requirement OpenSea implemented. More specifically, one user points out how adding royalty fees to Sewer Pass trading on OpenSea is impossible unless they block competitors. Assuming that is true, it seems like a very shade and one-sided agreement. OpenSea is the biggest marketplace, but squeezing out competitors through hard code seems harsh. 


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