OpenSea changes its stance on royalties, continues to impose creator fees on all NFT collections
In Brief
NFT marketplace giant OpenSea has announced it will still enforce creator royalties on all collections after recent backlash from the community.
On Saturday, the largest NFT trading platform disclosed the matter of creator royalties for NFT sales. OpenSea was reconsidering whether or not to enforce these royalties on the platform.
The company later decided to ask the community its opinion on three different scenarios: making the fees optional for traders, enforcing fees on specific collections, or implementing new enforcement methods. The feedback was unfavorable; creators and artists did not like the idea of not collecting any secondary sale payments on OpenSea. Royalties usually oscillate between 3% and 10% of the total sale value of an NFT.
Creators such as Yuga Labs expressed their discontent with OpenSea’s consideration. Streetwear brand The Hundreds canceled an NFT drop on the marketplace to remind the company that “artists are always in control.”
OpenSea heard the message “loud and clear” but showed data confirming the downward trend of the average percentage of royalty fees by the top 20 NFT collections.
“Unless something changes soon, this space is trending toward significantly fewer fees paid to creators. No policy that we implement will reverse this trend if this behavior continues,”
OpenSea wrote.
Last week, the marketplace pointed out that over $1 million in royalties weren’t allocated to creators. OpenSea gave the following steps as to how creators could receive incentive royalties throughout the space:
- Build paths to on-chain enforcement for existing collections.
- Develop incentives for communities to keep paying fees.
- Refuse to link royalty-free marketplaces on the project’s website.
As for other Ethereum marketplaces, LooksRare, Sudoswap, and X2Y2 have all eliminated or made creator royalties optional during the ongoing crypto winter. This was one of the main reasons OpenSea considered the change in the first place.
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About The Author
Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
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Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
