OpenSea Shuts Down Royalty Enforcement, Makes Creator Fees Optional.
18 Aug 2023, 08:00
OpenSea Shuts Down Royalty Enforcement, Makes Creator Fees Optional
OpenSea has reversed its policy on royalties for NFT artists by making creator fees optional, citing competition from rival marketplaces, including Blur, LooksRare, and Dew. The leading NFT marketplace announced earlier today that the changes would go into effect on August 31, 2023. Post this date, NFT artists who sell digital art on the platform will receive royalties on secondary sales only if the buyer chooses to pay it.
OpenSea Operator Filter To Be Disabled In addition to making royalties optional, the OpenSea Operator Filter will also be shut down, the NFT marketplace stated in a blog post. Operator Filter, which was launched in November last year, is a tool used by NFT artists to restrict the sale of their collections to marketplaces that don’t enforce creator fees in secondary sales.
The objective of the Operator Filter was to empower NFT creators by giving them control over their artwork and web3 business models. But OpenSea claimed that the tool required the participation of everyone in the web3 ecosystem, which did not happen, prompting the change in the royalty policy.