OpenSea reconsiders NFT royalties in response to creators’ criticism

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NFT
OpenSea reconsiders NFT royalties in response to creators’ criticism

OpenSea postpones its royalty policy enforcement until January 2023 amid the community backlash.

OpenSea has announced that it will move the royalties policy enforcement date to January 2, 2023. The platform will now impose creator’s royalties for new projects released on or after November 8.

In a recent Twitter thread, the NFT marketplace wrote:

In November, OpenSea started enforcing creator royalties on new NFT projects, urging the creators to incorporate the Operator Filter tool into their smart contracts. The tool would block the NFTs from being resold on marketplaces that don’t enforce royalties.

Any project that went live on November 8 or after without having the tool in place would no longer be eligible to receive royalties on OpenSea.

Some creators had questions about the royalties programs and the spirit of decentralization. Several artists chose not to use the royalties enforcement tool because they view it as an attack on DeFi, or a monopolistic move by OpenSea against competitors threatening its dominance.

In a separate thread, Art Blocks founder and CEO Erick Calderon labeled the Operator Filter “malware.”

Creator royalties are sums related to the selling of NFTs that are often given to the project’s developers by the vendor. These expenses account for 5% to 10% of the NFT’s retail price. For projects that generate a lot of trading, these fees may represent a sizeable source of revenue.

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Samuel is an adventurous person who likes to explore topics in-depth and learn new things each day. His passion lies in gaining knowledge to help transform the world through his writing skills. He also believes in blockchain technology and its potential to usher in a cashless society. Currently, he is pursuing a Computer Science Bachelor’s degree driven by his fascination with emerging technologies. He has writing experience of about three years in different fields and two in blockchain technology.