OpenSea makes changes for creator royalties following pushback
OpenSea, the NFT marketplace, has recently announced action on digital asset royalties, including a tool that users can use to ensure that their assets can’t be traded where royalties aren’t permitted.
While its approach was widely received, it wasn’t positive for many, prompting the company to change its policies after a slew of complaints.
This news comes around the same time that royalties have come under significant pressure, with platforms slashing fees to draw in traders.
With a glut in the NFT market, platforms are trying to bring customers in. Magic Eden, for example, implemented an optional policy towards royalties.
For those uninitiated, royalties are associated fees that go to an NFTs creator whenever it’s sold. Typically, these fees range from 5-10% of the end sale price. For creators and projects, royalties provide a valuable source of income, hence why there is such significant pushback on its removal.
Over the course of its thread on Twitter, OpenSea disclosed several adjustments to its changes to royalties. These included establishing a Creator Ownership Research Institute – a group that oversees the curation of Ethereum marketplaces blocked under its ‘Operator Filter’.
Among those marketplaces within the CORI – OpenSea is among them – with many others and smart contract projects. These firms will collaborate using a multi-sig wallet to make changes to the broader registry. During the tweet stream, OpenSea added that it will be expanding governance of this registry by adding stakeholders.
Following this announcement, the company mentioned that it will continue to enforce its royalties, but any projects added after November 8th will no longer receive any royalties on OpenSea.