OpenSea Rolls-Out Plan to Help NFT Artists Enforce Creator Fee Payments

OpenSea also stated that they won’t change royalty rules for existing NFT collections until December 8.

Written by Shomik Sen Bhattacharjee, Edited by Siddharth Suvarna | Updated: 7 November 2022 15:12 IST

Photo Credit: OpenSea

OpenSea is the biggest NFT marketplaces in the world

Highlights

Royalties are the fees that NFT artists earn when the work changes hands
OpenSea is considering what to do about existing NFT projects
Magic Eden made royalties optional for traders recently

Marketplace giant OpenSea laid out the first of a suite of tools for its users this weekend, allowing creators of new non-fungible token (NFT) collections to enforce royalties on-chain. Debuting on November 8, the company said it wants to "take a thoughtful, principled approach to this topic," following a long-drawn-out debate among players in the market about the correct course of action on enforcing payments to creators. The code to which it is giving creators access restricts NFT sales to marketplaces that enforce creator fees.

Royalties are the fees that NFT artists earn every time their work changes hands. This means that creators are paid for their art, even on secondary sales. For artists, this is hugely important and gives them more financial freedom to create and produce more art.

"It's clear that many creators want the ability to enforce fees on-chain & we believe that choice should be theirs–not a marketplace's–to make," the company wrote on Twitter. "So we're building tools we hope will balance the scales by putting more power in creators' hands to control their business model."

MoneyGram Has Launched Crypto Trading, Selling and Buying on Mobile App

2/ It's clear that many creators want the ability to enforce fees on-chain & we believe that choice should be theirs–not a marketplace's–to make.

So we're building tools we hope will balance the scales by putting more power in creators' hands to control their business model.
— OpenSea (@opensea) November 6, 2022

In the coming months, the company will produce additional tools serving a similar purpose and solicit community feedback on the developments.

4/ This tool is our first version of on-chain enforcement, and in the coming months we'll launch additional tools and improvements for on-chain enforcement of new collections, and we'll engage with the community to get feedback on them along the way.
— OpenSea (@opensea) November 6, 2022

OpenSea said that it is still considering what to do about existing NFT projects and that it will garner additional community feedback ahead of a self-imposed December 8 deadline. After that date, the marketplace will make a decision which could ultimately include making royalty fee payments optional for traders, as some other marketplaces have done.

The company is considering a range of approaches. These may include continuing to enforce off-chain fees for some subsets of collections, allowing optional creator fees or collaborating on other on-chain enforcement options for creators. The smart contracts of some existing collections may already allow OpenSea's upgrade, which would enforce royalties on-chain, while other contracts will be a bigger challenge to change, Finzer said in a blog post.

Instagram Users Will Soon Be Able to Buy and Sell Polygon-Powered NFTs

In recent months, many upstart and rival marketplaces have attempted to claw away market share by offering zero-royalty trading or making them optional. Nearly the entire Solana NFT market now operates with those models, after Magic Eden made royalties optional for traders, and Ethereum platforms like X2Y2, LooksRare, and Blur have followed suit.

Are the Pixel 7 and 7 Pro the best in their segment? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.