{"id":21318,"date":"2023-08-19T00:35:58","date_gmt":"2023-08-19T00:35:58","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/nft\/opensea-changes-royalty-stance-rarible-reacts\/"},"modified":"2023-08-19T00:36:01","modified_gmt":"2023-08-19T00:36:01","slug":"opensea-changes-royalty-stance-rarible-reacts","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/nft\/opensea-changes-royalty-stance-rarible-reacts\/","title":{"rendered":"OpenSea Changes Royalty Stance, Rarible Reacts"},"content":{"rendered":"
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When digital collectibles (NFTs) were first introduced into the emerging tech space, one of the biggest selling points was a new avenue for creators to get a piece of the pie every time their work was resold \u2013 or better known as a \u201ccreator royalty.\u201d<\/p>\n

The royalty debate has been the biggest conversation in the history of the NFT space \u2013 but also the biggest elephant in the room.\u00a0<\/p>\n

On Thursday (August 17), OpenSea changed its position towards creator royalty fees, announcing in a blog post that it plans to move away from its \u201cmandatory\u201d creator fees to \u201coptional\u201d creator fees this month.\u00a0<\/p>\n

In other words, collectors\/sellers are now offered a choice on whether they want to \u201cgenerously\u201d give back to the original artist they claimed to have supported.<\/p>\n

It clarified in the post that \u201ccreator fees aren\u2019t going away \u2013 simply the ineffective unilateral enforcement of them,\u201d which it believes is necessary to \u201cbetter reflect the principles of choice and ownership\u201d that continue to drive decentralized art.\u00a0<\/p>\n

Beginning August 31, OpenSea will stop enforcing royalty fees on all new NFT collections \u2013 however, it indicated that it will continue to enforce fees on certain existing collections through at least March 2024.\u00a0<\/p>\n

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Here\u2019s how this plays out after Aug 31:
\u2013 New collections: creator fees optional
\u2013 Existing collections using our Operator Filter: we\u2019ll enforce preferred creator fees on OpenSea through Feb 29 \u201824; optional after
\u2013 Existing collections not using our Operator Filter: no change<\/p>\n

\u2014 OpenSea (@opensea) August 17, 2023<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Imagine that you are a \u201cregular\u201d at a restaurant because you enjoy the chef, the exquisite culinary skills that go into the food, and the service from your waiter(s), to which you communicate through your return to the restaurant and tipping of your waiter(s). But on your next visit back to that same restaurant, you order, you eat, and you pay \u2013 only this time, you just pay the bill without tipping <\/em>your server.\u00a0<\/p>\n

OpenSea Continues to Be the Elephant in the Room<\/h2>\n

Last November, OpenSea soured its name after launching its \u201cOperator Filter,\u201d a unilateral enforcement tool that prevented the sale of creator collections to Web3 platforms that chose to enforce creator royalties and make them mandatory.\u00a0<\/p>\n

The extremely controversial decision by the NFT marketplace came after the token-based platform X2Y2 debuted its 0% creator royalty model eight months prior.\u00a0<\/p>\n

However, the straw that broke the camel\u2019s back was when the NFT platform Blur made royalties mandatory in February 2023. Blur has since surpassed OpenSea as the biggest NFT marketplace by trading volume, enforcing a 0.5 percent fee on the majority of its collections, where most creators will set their royalty fees at 5 to 10 percent.\u00a0<\/p>\n

OpenSea responded by stating that its previous mandatory 2.5% royalty fee would be dropped to 0% for a limited time \u2013 while also picking back up on another previously controversial plan to move projects that weren\u2019t using on-chain enforcement tools \u2013 essentially every project created prior to 2023 \u2013 to \u201coptional\u201d royalties.\u00a0<\/p>\n

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We\u2019re making some big changes today:
1) OpenSea fee \u2192 0% for a limited time
2) Moving to optional creator earnings (0.5% min) for all collections without on-chain enforcement (old & new)
3) Marketplaces with the same policies will not be blocked by the operator filter<\/p>\n

\u2014 OpenSea (@opensea) February 17, 2023<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Of course, that didn\u2019t go over well.\u00a0<\/p>\n

<\/figure>\n

The NFT royalty debate, which shouldn\u2019t be a debate at all, continues to keep the growth and transformation of digital art and collectibles at bay \u2013 a lot of talking, not a lot of execution.\u00a0<\/p>\n

According to crypto data firm Nansen, NFT royalties hit their lowest volume since 2021, and this week\u2019s news of Bored Ape Yacht Club (BAYC) NFTs hitting a low of approximately $51,500 (now at $43,000 as of press time) is evident of that.\u00a0<\/p>\n

The community wasn\u2019t shy about expressing their views towards the harmful impacts this type of mechanism has upon artists, with the majority of users expressing extreme discomfort as to the \u201cunsustainable behavior,\u201d \u201ccowardice,\u201d and \u201ckilling the ecosystem.\u201d<\/p>\n

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So are we boycotting @opensea<\/a> then? If it doesn\u2019t align with the incentives of creators, creators should move their business to places that do.<\/p>\n

\u2014 BETTY (@betty_nft) August 18, 2023<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

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No idea who is advising you guys, but everyone on CT now hates you even more. Your move is exploiting artists and making it harder for creatives to find success? How web2. FOH<\/p>\n

\u2014 \ud80c\udc80Jana Stern\ud80c\udc80\u2728 (@JanaSternHealer) August 18, 2023<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

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Let me impart a nugget of wisdom upon you. While market share is indeed a metric of significance, one mustn’t lose sight of the bigger picture. <\/p>\n

Just as a well-tailored suit loses its charm if worn in the wrong era, a robust market share becomes inconsequential if the market\u2026 pic.twitter.com\/8uyo4GaVIJ<\/a><\/p>\n

\u2014 Rekt Burgundy (@Rekt_Burgundy) August 17, 2023<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

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You\u2019re killing the ecosystem<\/p>\n

\u2014 Jaes Tips | 019710.eth (@jaestips_nft) August 17, 2023<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Rarible Reacts<\/h2>\n

On Friday, NFT marketplace Rarible made its position clear on X (formerly Twitter) with the hashtag #StandForRoyalties, sharing that it \u201cstands in solidarity with creators and artists\u201d by offering up a free mint.<\/p>\n

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R is for Royalties<\/p>\n

Stand in solidarity with creators & artists.<\/p>\n

Stand with us as we support them & their work.#StandForRoyalties<\/a> & pledge your support for those who have made Web3 what it is today.<\/p>\n

No Speculation.
No Utility.
Just solidarity.<\/p>\n

Claim your free mint below \ud83d\udc47 pic.twitter.com\/notP5ZwjzR<\/a><\/p>\n

\u2014 Rarible (@rarible) August 18, 2023<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

And at the end of the day, there\u2019s only one question that matters \u2013 why are we still having to overcome this debate when it serves as the beating heart of everything that \u201cWeb3\u201d and decentralized ecosystems are supposed to represent?<\/p>\n<\/p><\/div>\n