OpenSea Reviewing Compulsory NFT Royalty Enforcement

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  • OpenSea has reviewed its implementation of NFT creator fees
  • The NFT marketplace has added a timeline by which new creators can enjoy its on-chain royalties enforcement tool
  • The changes were influenced by community feedback

NFT marketplace OpenSea has introduced additional features to its efforts to support compulsory NFT royalties, weeks after launching an on-chain tool to enforce creator fees. Unfortunately, its method to support royalties failed to bring the community together, with some lamenting the marketplace’s sole control of the tool. Now, OpenSea has revealed that it’s opening the tool’s control to a decentralized community using the multi-signature approach.

Governed by CORI and Influential NFT Artists

Announcing the changes on Twitter, the marketplace said it has formed the Creator Ownership Research Institute (CORI) whose members will control its Ethereum-based NFT royalties tool. CORI’s members include other marketplaces such as Foundation, Nifty Gateway and Super Rare, with OpenSea adding that they’ll also add influential NFT artists to the list.

Apart from decentralizing control of the blockchain tool, the marketplace also changed the parameters governing when new creators set mandatory fees. Initially, OpenSea required NFTs launched after the first week of November to incorporate the filtering features that prevent the NFTs from being sold on anti-royalties platforms. 

Optional Royalties on OpenSea? No Problem

However, the community wasn’t happy with the short timeframe, forcing OpenSea to “extend the deadline for when new collections will be required to comply with creator fee enforcement standard to January 2.”

The marketplace has also disclosed that it’ll allow creators to bypass the on-chain royalties enforcement tool and set optional royalties, a feature that was recently launched by its rival Magic Eden

Another review on its tool is the disclosure that after January 2, creators will need to adhere to Ethereum’s EIP 2981 standards which ease the implementation of creator fees. The changes come at a time when NFT marketplaces like Magic Eden and X2Y2 are returning to support royalties, showing the importance of creator fees in growing the industry.