OpenSea to Stop Enforcing Creator Royalty Fees on Secondary Sales of NFTs

OpenSea, the popular NFT marketplace, has announced that it will no longer enforce creator royalty fees on secondary sales of NFTs. This decision will affect artists and teams who receive passive income from their work being resold. Starting from August 31, artists will not be able to require buyers to pay a creator fee, but can indicate their preferred fee as a tip. Existing collections on non-Ethereum blockchains and projects using OpenSea’s Operator Filter will have guaranteed creator fees until February 29, 2024.

Key Points:

OpenSea will no longer enforce creator royalty fees on secondary NFT sales
Buyers will be able to choose whether to pay a creator fee as a tip
Existing collections and projects using OpenSea’s Operator Filter will have guaranteed creator fees until February 2024
OpenSea’s decision is a response to the disruption caused by competing marketplaces that offer lower fees
The move highlights the struggle to retain users and the changing norms in the crypto community

This latest development in the NFT industry shows OpenSea’s efforts to adapt to the changing landscape. While some marketplaces have already slashed creator royalties, OpenSea had initially defended and enforced them. However, with the rise of competitors like Blur, OpenSea has had to reduce its royalty fee protections to remain competitive. The elimination of enforced fees altogether reflects the company’s struggle to retain users and adapt to the evolving priorities of creators and artists.

Hot Take:

OpenSea’s decision to stop enforcing creator royalty fees on secondary NFT sales may be seen as a necessary response to the changing market dynamics. However, it also raises concerns about the future sustainability of the NFT art revolution and the rights of artists. While some applaud the move towards decentralization, others criticize OpenSea for not providing alternative revenue streams for creators. As the competition intensifies and the NFT market evolves, marketplaces will need to find a balance between attracting users and supporting the rights of creators.