OpenSea reconsiders NFT royalties
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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