Following protests from the NFT community, NFT platform OpenSea has imposed a royalty on creators on all digital collections.
Opensea NFT Platform Mandates Royalty
- NFT community expresses outrage at loyalty protocol
- Twitter received an open letter from its creators
- Amid backlash, OpenSea enforces creator royalties
Nidhi Bhardwaj: Following recent backlash from creators, NFT (non-fungible token) platform OpenSea has announced that it will eventually mandate creator royalties on all digital collectibles. On November 7th, OpenSea announced the launch of an on-chain tool that will allow creators to enforce royalties on new collections created on the platform, but has since extended this offering to existing collections. has been discontinued.
The situation escalated when the community expressed anger at messages from OpenSea, and other communities challenged the “optional creator fee” proposal. The reconsideration sparked an uproar on platforms such as Twitter, demanding a clear stance from the company.
Backlash from the NFT community
On November 9th, prominent creators like Bobby Kim, co-founder of The Hundreds, voiced their support by canceling future releases of non-fungible token (NFT) collections on OpenSea. Along with the founder of the Bored Ape Yacht Club (BAYC), he has criticized OpenSea’s intention to remove royalties for legacy collections from its platform.
NFT usage fees are auto-generated payments made to creators upon secondary sale. Blockchain keeps them in the form of smart contracts. With each secondary sale, creators are paid for their art, ultimately gaining the financial freedom to create and produce art. His NFT marketplaces, such as LookRare and MagicEden, also removed the requirement for creator contributions earlier this year.
With such uncertainty already present in the NFT market, OpenSea’s statement has become a tough call for many creators. OpenSea’s recent decision to reconsider its royalty payment requirements reduced monthly sales by $700 million (about 5,500 crore) in June from $2.6 billion (about 20,600 crore) in May, according to Reuters. It is due to what you did. Up from a January peak of nearly $5 billion (about 40,000 kroner).
However, the creators were able to persuade OpenSea by posting an open letter on Twitter expressing their plight over the removal of royalties.