Sunday, June 23, 2024

OpenSea Will Continue to Enforce Creator Royalties on NFTs.

OpenSea will continue to enforce creator royalties on non-fungible tokens. The NFT marketplace confirmed that it will continue to enforce creator fees on all existing collections.

It acknowledged the creators and collectors passion and enthusiasm for the same. OpenSea said it heard them “loud and clear”. The online marketplace had said on Saturday that it was reconsidering its policy towards enforcing creator royalty fees on NFTs. It took into account rival marketplaces either having rejected such fees or made them optional for traders to pay. The NFT artist or creator typically sets a royalty fee which falls between 5% and 10% of the secondary sale price.

To come up with a decision, OpenSea sought guidance from its community to understand a range of perspectives from creators, collectors and builders in the space to help make sense of trends and behaviours the platform was observing. The NFT marketplace has self-imposed a December 8 deadline to take in community feedback and consider possible courses of action, including making creator fees optional for traders and only enforcing it on some types of NFT collections.

However, this hasn’t gone down well with Yuga Labs – the creator of Bored Ape Yacht Club. It has pushed back against OpenSea. Moreover, The Hundreds (street-wear brand) decided to cancel a planned OpenSea NFT drop. The firm’s founders said this was a reminder to everyone that the artists are always in control.

On its part, OpenSea stood by its decision and cited data highlighting that the share of market-wide creator royalty fees is tumbling in recent weeks as royalties-rejecting marketplaces gain the upper hand. OpenSea argued that the space is trending toward significantly fewer fees paid to creators. It outlined that no policy will reverse this trend of the behaviour continues.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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