OpenSea Deactivates Royalty Tool for Transparency and Creator Empowerment
– OpenSea, the NFT marketplace, is deactivating its royalty enforcement tool to enhance transparency and creator autonomy.
– The Operator Filter tool will no longer be maintained starting from August 31, allowing marketplaces to operate without limitations.
– OpenSea aims to improve transparency by simplifying the process for determining if a sale includes the creator’s fee.
– Creators who have already implemented the Operator Filter will still have their desired fees applied until February 29, 2024.
– The changes aim to empower creators by giving them greater control over fee applications and to create a seamless experience for sellers.
OpenSea’s Adjustments for Creators and Sellers
– OpenSea will introduce enhanced flexibility for sellers, allowing them to select the creator’s fee or choose their preferred method of fee payment.
– The company is reevaluating its fee structure to ensure a practical approach that yields favorable results.
– The previous method of enforcing creator fees was not successful due to the lack of widespread adoption and support across the web3 ecosystem.
– Marketplaces found loopholes to circumvent the Operator Filter tool, posing challenges for creators and buyers.
– The web3 ecosystem offers multiple revenue generation avenues for creators beyond just reselling digital assets.
Declining Trading Volumes in the NFT Market
– The NFT market experienced a surge in popularity and trading volumes in 2021 but faced a decline in 2022.
– The downfall of Do Kwon’s Terra ecosystem and its stablecoin project, TerraUSD, contributed to the decline.
– TerraUSD lost its peg to the US dollar, resulting in a panic-driven sell-off and wiping out billions from the crypto markets.
– OpenSea also suffered a significant security breach, leading to the theft of over $300 million worth of digital collectibles.
– The heist and investor confidence shook, causing a severe decline in trading volumes.
– Blur is currently the world’s largest NFT marketplace.
Hot Take
OpenSea’s decision to deactivate its royalty enforcement tool aims to enhance transparency and creator autonomy within the NFT market. By giving creators greater control over fee applications and improving the seller experience, OpenSea strives to create a more seamless and empowering platform. However, the declining trading volumes in the NFT market indicate challenges and risks that need to be addressed for sustained growth.
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