The NFT creator funds have attracted heated discussion within the NFT community in the past few months. But, the largest NFT marketplace, OpenSea, which according to CoinGecko, dominates more than 66% of the NFT market share, has been quiet about the debate.
Eventually, OpenSea has taken part in the royalties’ discussion and launched a new “on-chain” tool helping creators to enforce royalties seamlessly. The digital asset marketplace announced its new NFT tool on November 06.
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
OpenSea’s NFT Royalties Enforcement Tool
In the past few weeks, many digital collectibles marketplaces have been rushing to implement strategies to shield the creator economy. The Ethereum Layer 2 scaling solution Immutable X is a recent example, which announced plans to extend its enforceable NFT royalties model across the web3 ecosystem last week.
While commenting about the new on-chain NFT tool in a blog post, Devin Finzer, the CEO of OpenSea NFT marketplace, noted:
“In almost every digital collectible marketplace, where creator fund payments have been made optional, the payment rates have gone down less than 20%, with even others simply failing to pay at all.”
The New NFT Tool Is A “Simple Code Snippet”
In a subsequent tweet, Finzer described the new tool as a “simple code snippet.” The new NFT feature will allow creators to enforce royalties on NFT collections, smart contracts, and upgradeable smart contracts. He explained:
“It’s clear that many creators want the ability to enforce fees on-chain; and fundamentally, we believe that the choice should be theirs to make — it shouldn’t be a decision made for them by marketplaces.”
“OpenSea will enforce royalties for new collections using an on-chain enforcement tool, but won’t do so for new collections that don’t opt-in.”
In the meantime, according to OpenSea, the new royalty enforcement tool will apply to new NFT collections at this stage. The strategy is anticipated to be extended to existing NFT collections later.
Related
- Immutable Extends Enforceable Royalties To The Web3 Ecosystem
- Magic Eden Launches MetaShield To Protect Creators’ Royalties
- NFT Markets That Ban Royalties Face Growing Backlash From Creators
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