NFT marketplace X2Y2 follows rival, OpenSea in enforcing royalties

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NFT
NFT marketplace X2Y2 follows rival, OpenSea in enforcing  royalties

The NFT marketplace X2Y2 announced that it has removed “Flexible Royalty”, its original practice of letting users choose royalties, saying it will now enforce royalties on all collections.

X2Y2 tails rival, OpenSea, on ‘brave move’

In a Twitter thread, the Ethereum NFT marketplace, X2Y2 announced yesterday, the 18th of November, on its decision to enforce creator-set royalties on all NFT collections on both existing projects and newly-launched ones.

Launched earlier this year, X2Y2 saw significant trading activity over the summer. Previously, X2Y2 allowed a Flexible Royalty model that let the creators and collectors alike have input into how strictly the marketplace enforced royalties for each project.

Even though only certain types of NFT projects, specifically artwork and access passes, could choose to have royalties fully enforced. Others like Profile picture (PFP) projects were not eligible for that option.

However, yesterday they announced that it will enforce creator-set royalties on all NFT collections—both existing projects and newly-launched ones, as well.

Earlier this month, top Ethereum NFT marketplace OpenSea said it was considering a move away from enforced royalties, as well, following moves by marketplaces like X2Y2, Blur, and LooksRare to make them optional.

But they were immediately faced with backlash and criticism from NFT creators. Bored Ape Yacht Club maker Yuga Labs, and streetwear brand The Hundreds all canceled their planned NFT drop on the marketplace.

Last week, OpenSea changed course and said that it will continue to enforce creator royalties on all projects, new and old, including those using its blocklist product. Today, OpenSea’s rival marketplace, X2Y2 is similarly saying it will enforce royalties.

Let’s put belief aside, “Code is Law!” says X2Y2

After praising OpenSea for ultimately taking a stand for creator royalties, in the Twitter thread, X2Y2 admitted that many newly launched projects were using OpenSea’s blocklist code that banned those NFTs that don’t fully enforce royalties from being traded on marketplaces.

 “We used to believe the best way to handle royalties is to give both parties, creators and traders, the right to choose.

It is the rationale behind our Flexible Royalty feature. And we still believe so.”

However, 

“Putting belief aside, if there was anything self-evident in crypto, it’s the ‘code.’ Since [OpenSea] released the OperatorFilter two weeks ago, most of the new projects have sided with it,” 

X2Y2 It added, ” ’Code is law,’ and we respect the law.”

“With OpenSea risking its market share and taking a brave move to defend royalties,” X2Y2 wrote, “they have our respect!”

” We hope other marketplaces…join us” OpenSea responds!

OpenSea responded to X2Y2 on Twitter saying:

“Proud to stand with you—and the many brilliant creators in our community—on this critical measure,” OpenSea wrote. “We hope other marketplaces will continue to join us. Onwards and upwards.”

They also mentioned that it had removed X2Y2 from its marketplace blacklist, which means that NFTs from creators that use the OperatorFilter code can now be traded on X2Y2.

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