Here’s What OpenSea’s New Creator Royalties Could Mean!
Here’s What OpenSea’s New Creator Royalties Could Mean!
The biggest NFT marketplace in the world has finally opened up their voice on the current issues surrounding artist royalties that’s been a big debate in the space for some time now.
OpenSea’s New Royalties System
On a recent Twitter thread, OpenSea revealed their plans to start implementing a new “thoughtful, principled approach” to NFT royalties. This approach would help with their main goal of protecting NFT artists and their incomes from royalty fees.
There’s been a lot of discussion over the past few months about business models for NFT creators & whether creator fees (“royalties”) are viable.
Given our role in the ecosystem, we want to take a thoughtful, principled approach to this topic & to lead w/ solutions. 🧵
— OpenSea (@opensea) November 6, 2022
For ‘future collections’ OpenSea explains that they plan on creating a system whereby those NFT collections can only be traded exclusively on marketplaces that honor royalties. This decision in itself has caused some controversy, with some in the community claiming that this method is ‘anti-competitor’ while others praise this decision for its thoughtfulness towards NFT artists.
For current existing collections however, OpenSea seems to still remain at a standstill, not knowing how to move forward on royalties for current collections, explaining that they will come to a final decision on this on the 8th of December, 2022.
This however, has brought a lot of nervousness and buzz in the community, with many thinking that this means OpenSea will likely implement 0% royalties or optional royalties on their platform for current existing NFT collections.
GM. Speaking as a collector now. Everyone that has purchased NFTs thus far should be aware and mad about the potential for all pre December collections moving to 0/optional royalties on @opensea Many will need to create more NFTs to create more revenue – devaluing what you hold.
— BETTY (@betty_nft) November 6, 2022
Related: Raoul Pal Says Traders are Massively Underestimating NFT on Crypto Markets
Effect On The Future Of NFTs
With OpenSea being known as the number one NFT marketplace in the world, their decision on royalties will be extremely likely to affect the future of how royalties are treated within the NFT community, with many marketplaces likely to follow suit on their decision.
It’s because of this that many in the community have expressed their hope for OpenSea to remain supportive of royalties, keeping royalties a must-have on every NFT collection on their platform.
Royalties are what drew us here. This legitimately might be the biggest rug pull we’ve seen in the space so far.
1. Guarantee royalties in the beginning
2. Wait for artists to establish your platform
3. Pull the rug out and take away royalties
🤦♂️
— John Knopf (@JohnKnopfPhotos) November 6, 2022
Related: OpenSea Launches New Copymint Feature
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