A DAO proposal to hand over CryptoPunks IP to the community is gaining traction amid mounting concern about Yuga Labs’ alleged objectives.

The CryptoPunks community is up in arms over claims that Yuga Labs is considering selling the intellectual property (IP) rights to the CryptoPunks non-fungible token (NFT) collection.

The story, which began with a Jan. 14 post on X by Azuki researcher Wale.moca, has sparked outrage among fans and industry figures.

According to Wale.moca, “several sources close to the matter” have suggested that Yuga Labs may be “in the process” of selling the CryptoPunks IP. Yuga Labs purchased the intellectual property rights to 423 CryptoPunks NFTs from Larva Labs in March 2022.

Yuga’s response

Greg Solano, Yuga Labs’ co-founder, responded to the rumors on X. He stated:

 “Many people have approached us, especially in recent months…” Does not mean we are accomplishing anything.”

Solano underlined that, while he did not rule out a settlement, any agreement must ensure a long-term good impact for CryptoPunks.

Solano wrote: “My business and life are NFTs.” “I won’t take a deal for money if it harms the asset’s legacy. Some punks may think yuga bad.” “Whoever owns punks must have an iron stomach and be willing to basically lock up and throw away the key.”

Several community members have expressed concern with Yuga Labs’ management of the CryptoPunks IP following its acquisition in 2022.

Adam Smoot, an NFT collector, stated that the CryptoPunks IP has been moved between owners with varying claims. StarPlatinum, another forum member, commented to X that “CryptoPunks IP seems to have lost direction, relying only on its status as a grail NFT,” following YugaLabs’s purchase.

Dheeraj Shah, an NFT collector and trader, told Cointelegraph, “When Yuga bought CryptoPunks, people loved how they mainly left it alone. I just granted IP rights to holders and then took a step back. Pretty different than how they handled Bored Apes, which, to be honest, hasn’t gone well.”

Shah added that speculations of Yuga selling CryptoPunks’ intellectual property fuelled market excitement. He stated that it might allow CryptoPunks to become “a piece of digital history, not another ‘utility’ project.”

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