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Bored Ape Yacht Club (BAYC) creators Yuga Labs is set to wind down support for OpenSea following the platform\u2019s upcoming removal of its on-chain royalty enforcement tool Operator Filter. <\/p>\n
The Operator Filter was launched in November 2022, essentially enabling creators to restrict secondary nonfungible token sales only to marketplaces that enforce creator royalties, thus filtering out platforms like Blur. <\/p>\n
However, OpenSea revealed on Aug. 17 that it will soon \u201csunset\u201d the tool at the end of August, citing a lack of \u201copt-in by the entire ecosystem,\u201d platforms being able to bypass the tool and pushback from creators.<\/p>\n
The following day, Yuga Labs CEO Daniel Alegre shared<\/a> an announcement via X (Twitter), stating that the firm will gradually wind down its use of OpenSea\u2019s Seaport marketplace smart contract: <\/p>\n \u201cYuga Labs will begin the process of sunsetting support for OpenSea\u2019s SeaPort for all upgradable contracts and any new collections, with the aim of this being complete in February 2024 in tandem with OpenSea\u2019s approach.\u201d<\/p><\/blockquote>\n \u201cYuga believes in protecting creator royalties so creators are properly compensated for their work,\u201d he added. <\/p>\n On @opensea<\/a>‘s decision to sunset their Operator Filter. pic.twitter.com\/ahc155WWkX<\/a><\/p>\n \u2014 Yuga Labs (@yugalabs) August 18, 2023<\/a><\/p><\/blockquote>\n The post was met with a positive reaction from members of the BAYC community, while content creators\/NFT project founders such as EllioTrades and Alex Becker also praised<\/a> the move. <\/p>\n The CEO and co-founder of the Forgotten Runes Wizards Cult NFT project @dotta, was also in support, noting that they loved to see how Yuga Labs responded to OpenSea. <\/p>\n \u201cThe creators have enough power in aggregate to move to royalty-paying marketplaces. Yuga leading the charge is the spark that was needed.\u201d<\/p><\/blockquote>\n Yuga is banning OpenSea in light of their choice to stop enforcing creator royalties<\/p>\n You love to see it<\/p>\n Like I mentioned yesterday, OpenSea taught us how to filter exchanges with bad behavior by giving us the OperatorFilter registry<\/p>\n Those of us that implemented it, now plan on\u2026<\/p>\n \u2014 dotta (@dotta) August 18, 2023<\/a><\/p><\/blockquote>\n Notably, Luca Netz, the CEO of the Pudgy Penguins NFT project also seemingly hinted towards doing the same thing as Yuga Labs, as he responded to the firm\u2019s post by calling it a \u201cgreat move.\u201d<\/p>\n In a separate post from Coinbase NFT on Aug. 18 highlighting its \u201ccommitment to enforcing creator royalties,\u201d Netz also stated: \u201cLet\u2019s talk.\u201d<\/p>\n Let\u2019s talk<\/p>\n \u2014 Luca Netz (@LucaNetz) August 18, 2023<\/a><\/p><\/blockquote>\n The notion of creator royalties and whether they should be supported\/enforced or not, has become a divisive topic in the NFT community over the past year or so. <\/p>\n In the early stages of the NFT boom around 2021, it was the general practice to enforce creator royalties. However, marketplaces like Blur then stormed the market in October 2022 and managed to secure significant market share by offering zero trading fees and an optional creator royalty payment model. <\/p>\n Related: <\/em><\/strong>Nifty News: Coca-Cola gets Based, Reddit avatars reach 20M milestone and more<\/strong><\/p>\n As a result, trading fees and royalty percentages started to decrease across the board as marketplaces competed for users. <\/p>\n As it stands, it generally appears that the NFT community is split between those who favor the cheaper NFT trading model of platforms like Blur, and argue for different methods of creator compensation, and those who staunchly advocate for the need to pay royalties. <\/p>\n In their current form, NFT royalties don\u2019t make sense Isn\u2019t it better to make them optional and incentivise compliance, while working out other monetisation avenues for artists?<\/p>\n \u2014 scriblooooor (@scriblooooor) August 18, 2023<\/a><\/p><\/blockquote>\n Magazine: <\/em><\/strong>NFT Collector: Grails\u2019 lucky dip of famous NFT artists, new hope for PFP holders<\/em><\/strong><\/p>\n<\/div>\n\n
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Divided market <\/h3>\n
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– owed for perpetuity
– owed even if sold at loss
-unenforceable without compromising ownership<\/p>\n