OpenSea joins the NFT royalties debate with its stand.
A new announcement by OpenSea to release an on-chain tool to enforce royalties has been met with mixed reactions by the NFT community. While some welcomed this proposition, others felt the announcement was vague and awaited more details before taking a clear stand regarding the matter.
The well-known NFT marketplace joins the growing debate on the issue of NFT royalties, with its CEO Devin Finzer noting that voluntary creator fee payment had decreased to less than 20% in marketplaces where fees are optional, while creator fees are not paid at all in other marketplaces. They have now decided to launch a tool allowing creators to ‘enforce’ their royalties. A tweet by OpenSea reads, ‘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 and lead with solutions.’
It would only be applicable for new collections, though, as it would be difficult to charge fees for existing collections. OpenSea also announced they would launch additional tools for on-chain enforcement in the coming months.