- Leading NFT marketplace OpenSea has rowed back on its plan to scrap mandatory creator royalties
- The move comes after NFT creators disagreed with the marketplace’s intentions to enable optional royalties
- OpenSea had indicated that it will provide on-chain support of creator fees for new NFTs
Leading NFT marketplace OpenSea has bowed to pressure from NFT creators and has brought back compulsory royalties payment for all collections on the platform. The marketplace had earlier this week said that it intends to support creator fees for new NFTs and was undecided on how to implement the same for existing collections. The about-turn comes a day after Bored Ape creators disagreed with the marketplace’s way of handling royalties.
UPDATE: We will continue to enforce creator fees on all existing collections.
🧵⬇️— OpenSea (@opensea) November 9, 2022
OpenSea Bows to Community Backlash
In a Twitter thread, OpenSea disclosed that its change of heart was influenced by artists who have passionately provided their views on which route the marketplace should take when it comes to creator fees:
6/ Simply put, in the last week, almost half of the creator fees set by the top 20 collections were ignored. This amounts to well over $1M for creators left on the table.
— OpenSea (@opensea) November 9, 2022
OpenSea noted that within the last week, NFT collectors have chosen to bypass royalties worth $1 million, an amount that would have gone to creators. OpenSea added that more money for creators will likely be “left on the table” if nothing “changes soon.”
Fee-Avoiding Marketplaces Aren’t Your Friends
As advice, OpenSea also said that creators should use all tools at their disposal to ensure they receive a percentage of the sales each time their creations change hands. One way it suggested is by refusing “to link to fee-avoiding marketplace from [their] project websites,” or use an on-chain tool when creating new NFT projects. However, it also noted that the push to have collectors pay royalties can only be strengthened by creators joining hands to “ensure that fees are durable.”
OpenSea’s new royalties tune comes less than four days after the marketplace said that it may turn to optional royalties for existing collections. With OpenSea showing its support, it’s unclear whether Magic Eden and others who took the optional-royalties road will make a U-turn.
