The Mega Maxi
  • Home
  • News
  • Topics
    • Art
    • Careers
    • Guides
    • Business
  • Features
    • Features
    • Power Rankings
    • TMM TownHall
    • POW Series
  • About
  • Community
  • Contact
No Result
View All Result
  • Home
  • News
  • Topics
    • Art
    • Careers
    • Guides
    • Business
  • Features
    • Features
    • Power Rankings
    • TMM TownHall
    • POW Series
  • About
  • Community
  • Contact
No Result
View All Result
The Mega Maxi
No Result
View All Result
Home News

OpenSea On-Chain Creator Fees: Why NFT Creators Are Not Happy About It?

OpenSea has officially announced an on-chain operator filter registry tool to help NFT creators implement on-chain fees, but creators are not happy about it.

Jhas Vidal by Jhas Vidal
November 7, 2022
Reading Time: 4 mins read
0
OpenSea On-Chain Creator Fees

In the blog that OpenSea posted, co-founder and CEO Devin Finzer recalled their history of honoring NFT royalties or creator fees. This is usually a 5–10% fee set by the creator, which is paid by the seller on any secondary market sale.

RELATED POSTS

Meta Is Killing Its NFT Features Amidst Crypto Meltdown

Traders Dump USDC After Silicon Valley Bank and Silvergate Fail

Yuga Lab’s Twelvefold Bitcoin NFT Auction Raises $16.5 Million

Although these royalty expectations are not fully enforced on-chain, the main marketplaces (including OpenSea) have generally respected them. However, many new and rival marketplaces have attempted to gain market share by offering zero-royalty trade or making it voluntary.

After Magic Eden made royalties optional for traders, other Ethereum platforms like X2Y2, LooksRare, and Blur soon followed. Nearly the entire Solana NFT market currently runs on such models. As a result, a massive drop in traders paying royalties has been seen, which is a pain for creators.

This has started a lot of discussions about whether an NFT marketplace should allow creator fees. As a response to this, OpenSea announces a new tool to give the final decision about this to the creators.

 

It’s clear that many creators want the ability to enforce fees on-chain & we believe that choice should be theirs–not a marketplace’s–to make.
So we’re building tools we hope will balance the scales by putting more power in creators’ hands to control their business model

— OpenSea (@opensea) November 6, 2022

How Would This On-Chain Creator Fees Work?

The OpenSea initial on-chain tool is a simple code snippet that creators can insert into their future NFT contracts, as well as existing upgradable ones. In order to add this code to your contracts, you need to follow the steps listed on GitHub.

This code will restrict your NFT sales to marketplaces that enforce creator fees. This means NFT collections with this code on their contracts can’t be traded at marketplaces that don’t support or have optional royalties.

Unfortunately, this will only be available for the new NFT collections starting November 9 at 1 AM PHT. Any existing collections before that time and date won’t be able to enjoy this new feature.

What Will Happen To Existing NFT Collections?

OpenSea stated that they are still deciding what to do with the existing NFT projects. They said that they will get further community input before the December 8 deadline that they have set. After that time, they will decide, which may ultimately involve making traders’ payment of royalty fees voluntary, as some other platforms have done.

In transparency, the consideration set for what happens after Dec 8 is wide open – w/ options ranging from continuing to enforce off-chain fees for some subsets of collections to allowing optional creator fees to collaborating on other on-chain enforcement options for creators

— OpenSea (@opensea) November 6, 2022

Why NFT Creators Are Not Happy With OpenSea’s On-Chain Creator Fees Update?

Existing collections can potentially lose their royalties in the next 30 days with this new update, with no guarantee that they will get them back after December 8. Currently, everything is unclear. Finzer’s assurance that he will respect royalties doesn’t give many creators and traders any comfort.

After all, the leading Solana Marketplace, Magic Eden, supported royalties and promised to keep them. They eventually backtracked a few days later after that promise, as competitors ate away at their market share.

Therefore, you can’t blame NFT enthusiasts for raising concerns about the OpenSea on-chain creator fees update. They believe that OpenSea is using the same “smoke and mirrors” tactics that Magic Eden used with this new tool.

Imo the @opensea announcement is a clever reframing of taking existing collections to zero royalties. This will disproportionately fuck over emerging artists and marginalized creators who will need to turn to VC funding. Statistically, over 95% of VC funding goes to men.

— BETTY (@betty_nft) November 6, 2022

OpenSea is adopting a more deliberate and open approach to determining royalties than its rivals. However, some artists are still skeptical of OpenSea’s true goals. As a result, they’re seeking to organize the NFT community to help spread the word.

Therefore, it is now on You, the collectors, the creators, and the critics, to be heard and decide what happens. As the biggest mainstream NFT marketplace, if OpenSea subtracts creator royalties, it will significantly impact the entire ecosystem.

— bobbyhundreds.eth (@bobbyhundreds) November 7, 2022

 

What do you think of this new update from OpenSea?

Source: https://opensea.io/blog/announcements/on-creator-fees/

Tags: nftsopenseaopensea nft
ShareTweetShare
Jhas Vidal

Jhas Vidal

Jhas Vidal is the Head of Content of The Mega Maxi.

Related Posts

Meta Killing NFT Features
News

Meta Is Killing Its NFT Features Amidst Crypto Meltdown

March 14, 2023
Traders Dump USDC
News

Traders Dump USDC After Silicon Valley Bank and Silvergate Fail

March 13, 2023
TwelveFold Bitcoin NFTs
News

Yuga Lab’s Twelvefold Bitcoin NFT Auction Raises $16.5 Million

March 9, 2023
Binance AI NFT Generator
News

Binance Releases An AI-Powered NFT Generator

March 3, 2023
Blur Overtakes OpenSea Market
News

Blur Overtakes OpenSea in Market Share: How Did This Happen?

March 1, 2023
Lotte Polygon Partnership
News

Lotte Group, South Korea’s fifth largest company, collaborates with Polygon for global NFT drive.

March 1, 2023
Next Post
How To Survive A NFT Bear Market

NFT Bear Market: How Can You Survive It?

Binace CEO CZ and FTX CEO SBF

Binance Plans To Buy FTX: How Did This Happen?

OUR SOCIAL MEDIA

Recommended Stories

JMC, a wholehearted degen and advocate pushing mental health awareness

POW with JMC

March 9, 2023
JQ Crypto

POW with JQ Crypto

February 13, 2023
Francis Lim, a Genises Creator of Likha NFT

POW with Francis Lim

February 22, 2023
Contact Terms Privacy

Name

Copyright © 2022 The Mega Maxi. All rights reserved.
Facebook-f Twitter Instagram Tiktok
No Result
View All Result
  • Home
  • News
  • Topics
    • Art
    • Careers
    • Guides
    • Business
  • Features
    • Features
    • Power Rankings
    • TMM TownHall
    • POW Series
  • Community
  • About
  • Contact Us

Copyright © 2022 The Mega Maxi. All rights reserved.

Stay Updated

Don’t miss out on the latest Web3 news, insights, and alphas. Get the best of TMM straight to your inbox!

Name
Email