Yuga Labs has announced it will no longer engage with the CryptoPunks project after facing significant community backlash over its new Super Punk World collection. This decision came after the NFT company unveiled the collection on May 20, featuring 500 hybridized 3D sculptures created by New York-based painter Nina Abney. The collection aimed to honor the irreverent, early-internet roots of CryptoPunks by blurring the lines of race and gender.

Despite its artistic goals, the Super Punk World collection was met with criticism from various community members who labeled it as “woke.” One member claimed Yuga Labs had "killed" CryptoPunks with the new collection, asserting, “Go woke, go broke. Yuga killed Punks today.” Another individual threatened to sell their CryptoPunk NFT in response to the announcement. Additionally, a pseudonymous influencer named Greg sarcastically questioned if Yuga Labs’ account had been hacked, reflecting the discontent among some enthusiasts.

Reacting to the backlash, Yuga Labs CEO Greg Solano addressed the controversy on X. Solano clarified that his advisory position with EigenLayer was personal and not representative of the Ethereum Foundation. He explained that the intent behind collaborating with artists like Abney was to bridge the gap between Web3 and the traditional art world. He emphasized that the genesis keys do not have the power to change protocol rules arbitrarily but can signal when node operators should adopt new rules.

Solano also mentioned plans to distribute Abney's collection to those already supporting her work, possibly through airdrops to SuperCoolWorld holders. He reiterated that Yuga Labs would no longer alter the CryptoPunks project, stating, "Yuga will no longer touch punks. They will just be decentralized and preserved on the blockchain." He added that Yuga Labs aims to support museums and institutions in acquiring CryptoPunk NFTs to educate their audiences about the collection.

Despite a downturn in NFT trading volumes, the CryptoPunks collection saw a resurgence in March with two record-breaking transactions. On March 4, a rare alien CryptoPunk sold for 4,500 Ether, approximately $16 million at the time. This record was surpassed on March 20 when another CryptoPunk was sold for 4,850 ETH, worth about $16.4 million.

As Yuga Labs steps back from the CryptoPunks project, the community continues to debate the implications of its decisions, highlighting the ongoing tension between innovation, artistic expression, and community expectations in the NFT space.