- OpenSea said on Saturday that it was reviewing its approach towards royalty payments.
- The NFT artist or creator determines the royalty rate.
Following a spate of competing marketplaces that had either rejected such fees or made them optional for traders to pay, OpenSea said on Saturday that it was reviewing its approach towards imposing creator royalty payments on NFTs. The NFT artist or creator determines the royalty rate, which is usually between 5 and 10 percent of the item’s resale price.
Backlash From Creators
OpenSea had self-imposed a deadline of December 8 to review community input and potential courses of action, some of which include making creator fees voluntary for traders, only enforcing them on certain sorts of NFT collections, or deploying new enforcement mechanisms.
Many renowned developers, such as Yuga Labs, the developer of Bored Ape Yacht Club, voiced their displeasure with OpenSea’s plans to discontinue enforcing royalties and started coordinating amongst themselves in response.
The Hundreds, a well-known streetwear label, said on Tuesday that it will not be releasing any new OpenSea NFT products this week, marking an escalation in the brand’s reaction. “May it be a reminder to them, to you, and the world that the artists are always in control,” the firm’s founders wrote.
OpenSea urged authors to incentivize sellers to pay royalties by directing customers to stores that do so. It also suggested incorporating new forms of control.
On Saturday, OpenSea unveiled a blacklist that prevents listed markets from processing newly formed NFT projects’ revenues. This strategy is directed at OpenSea’s main competitors—marketplaces that do not strictly enforce royalty rates.
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