Yuga Labs to End Support for OpenSea Due to Royalty Model Change
Yuga Labs, the team behind the Bored Ape Yacht Club (BAYC) NFT collection, has announced that it will stop supporting OpenSea due to a change in the platform’s royalty model. Yuga Labs plans to wind down its use of OpenSea’s SeaPort and stop creating new collections on the platform by February 2024.
Key Points:
- OpenSea introduced the Operator Filter tool to enforce creator royalties, but recently decided to sunset it due to lack of adoption and loopholes.
- Yuga Labs expressed its commitment to protecting creator royalties and ensuring fair compensation for their work.
- The BAYC community and other NFT project founders, such as EllioTrades and Alex Becker, supported Yuga Labs’ decision.
- The issue of creator royalties has divided the NFT community, with some advocating for alternative compensation models.
- The rise of platforms like Blur offering zero trading fees and optional royalty payments disrupted the market and led to a decrease in royalty percentages.
Hot Take:
Yuga Labs’ decision to end support for OpenSea reflects a growing divide within the NFT community regarding creator royalties. While some platforms prioritize cheaper trading models, others, like Yuga Labs, believe in fairly compensating creators. This shift may prompt creators and collectors to seek out marketplaces that prioritize royalty payments, potentially impacting the future of the NFT market.
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