OpenSea, the Ethereum-based NFT marketplace, has taken steps to help NFT creators on its platform. The CEO of the platform said OpenSea would launch a tool this week.
The tool will help creators to enforce NFT royalties. The news sparked mixed reactions from NFT creators and the OpenSea community.
On November 6th, Devin Finzer, the CEO of OpenSea, weighed in on the recent NFT royalties debate. According to Finzer, creator fees are not paid in some NFT marketplaces.
Finzer stated that the payment rate had dwindled for other platforms where payment is voluntary. This tool will give creators more power over their NFTs. In addition, it will allow them to provide “on-chain enforcement” of royalties on their NFTs.
According to the OpenSea CEO, the tool is a simple code that allows creators to impose royalties on their NFT collection via smart contracts. They can also use it to upgrade existing smart contracts.
Furthermore, the code can restrict the sales of NFTs to platforms where creator fees are mandatory. He said:
“Most creators want to impose on-chain fees on their NFTs. However, we believe such decisions rest in their hands. Hence, no marketplaces should decide for them.”
Finzer also stated that OpenSea would use an on-chain compliance mechanism to impose royalties for new releases. However, it will only do so if the owners of the NFT collections want it.
Finzer stressed that OpenSea is “not compelling individuals to utilize its approach.” Thus, authors may use whatever alternative they like and execute it.
NFT Trading On OpenSea Drops By Over 90%
Meanwhile, OpenSea’s latest announcement comes amid ongoing turmoil in the NFT sector. For example, in October, NFT marketplaces like Magic Eden transitioned to a different NFT royalty model.
In this model, payment of royalties on NFTs is optional. This means sellers and buyers can choose how much to pay as royalty fees to the original designer.
Magic Eden’s move sparked outrage in the community. Some NFT artists revealed that this would kill several NFT projects. Others argued that nobody would be willing to pay royalties.
Similar narratives surrounded OpenSea’s recent announcement. For instance, Wab.eth, co-founder of Pixl Labs and The Pixlverse, expressed satisfaction with the latest statement.
However, others questioned OpenSea’s decision to allow creators to enforce royalties. Finzer explained the reason for the platform’s recent steps. He noted that the present system for creator fee enforcement is not sustainable. Hence, OpenSea is taking a different approach to help creators regarding royalties and fees.
Nevertheless, the NFT market’s trading volume has slumped in recent times. According to multiple reports, trading volume on OpenSea has dropped by 94%. In 2022, OpenSea recorded its highest trading volume in January (about $4.8 billion).
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