Opensea Reinforces Mandatory Royalties

Published on:

Last Updated on November 11, 2022 by Bitfinsider

OpenSea will not offer creator royalties as an optional feature. After a number of competing marketplaces decided to eliminate the requirement to pay crater royalties when purchasing NFTs, the platform flirted with the notion. Saturday, OpenSea disclosed that it was contemplating making these fees optional for platform traders.

Typically, the NFT artist or creator sets a royalty rate between 5 and 10 percent of the secondary sale price. The platform established an internal timeline for when it would evaluate community comments and apply it to potential courses of action. These included making creator fees optional for traders, enforcing them solely on specific types of NFT collections, and introducing entirely new enforcement mechanisms.

However, the marketplace received a great deal of backlash from the community, which harshly criticized this strategy. Numerous major designers and NFT artists have spoken out against this action, including Yuga Labs, the author of the renowned NFT collection Bored Ape Yacht Club. The renowned streetwear brand The Hundreds, which had an NFT collection drop scheduled for the OpenSea platform this week, also voiced opposition. The company canceled the drop and informed the platform that “artists are always in charge.”

Therefore, the OpenSea team revealed on Thursday that it has abandoned its optional royalties plan and will continue to charge creators on its platform mandatory royalties.

Nonetheless, the marketplace provided data indicating that the proportion of market-wide creator royalty costs has been declining dramatically, with more and more royalty-rejecting marketplaces emerging in the web3 arena. The OpenSea team also stated that producers must provide additional incentives with their NFTs to encourage traders to continue paying royalties and using platforms that honor royalties. In addition, they urged that artists implement on-chain enforcement for their existing collections and remove links to fee-free marketplaces from their project websites.

Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.