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- 📢 Gate Square #MBG Posting Challenge# is Live— Post for MBG Rewards!
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Dapper Labs and the plaintiff have reached a settlement in the NBA Top Shot NFT lawsuit, confirming the decentralization of the Flow Blockchain.
Dapper Labs and the plaintiff have reached a settlement in the NBA Top Shot NFT lawsuit
After a long legal dispute, the Flow blockchain and NBA Top Shot developer Dapper Labs have reached a settlement agreement with the plaintiffs regarding the lawsuit related to NFT sales. The lawsuit, which began in 2021, accused Dapper Labs of selling NFTs as securities without registration.
The co-founder and CEO of Dapper Labs expressed satisfaction with the settlement outcome, believing it opens a new chapter for the company and the Flow community. He emphasized that legal clarity will allow Dapper Labs to focus more on its core mission of providing better services to users, while also creating more room for growth for developers and entrepreneurs within the Flow ecosystem.
It is worth noting that this case confirms that Flow is a fully decentralized, permissionless public blockchain that is not controlled by Dapper Labs. Flow will continue to be committed to building a blockchain world where users own their data, digital assets, and online identity sovereignty, aiming to promote the thriving of digital communities in an open and decentralized environment.
This settlement not only consolidates Dapper Labs' innovative position in the digital collectibles space but also further clarifies that NBA Top Shot Moments do not fall under the definition of securities under U.S. federal law. This lays a foundation for Dapper Labs' ongoing development and innovation.
Despite the ongoing litigation, NBA Top Shot continues to maintain a strong development momentum. Data shows that since the beginning of 2024, over 27,000 independent collectors have purchased collectibles on the platform; the user conversion rate has significantly improved; and the number of high-spending users has noticeably increased. Dapper Labs has also launched the popular Fast Break game, further enriching the user experience.
Other key points of the settlement agreement include:
Confirm the decentralized characteristics of the Flow blockchain to ensure its independent operational capability.
Expand the authorized trading market scope of NBA Top Shot Moments.
Optimize the payment and withdrawal system to enhance user experience.
Strengthen employee compliance and ethical marketing training.
Transfer the remaining Flow tokens to the Flow Foundation to promote ecosystem development and decentralization.
This settlement provides important legal clarity for Dapper Labs and the entire NFT industry, with the potential to promote healthy development in the industry.