The NFT marketplace Blur let users to redeem care packages for $BLUR, the platform’s native token. The event was highly anticipated, and as a result, the market had a huge increase during the past month. In the last 30 days, the royalties-optional market had a trading volume of over $430 million. And yesterday, the money continued to flow.
During the event, some of the best traders made over than $1 million in tokens. Blur’s 24-hour trading volume was about $9.5 million, second only to OpenSea’s trading volume of approximately $12 million, according to DappRadar statistics.
Now, it looks like Blur and OpenSea are involved in a new chapter of the Web3 royalty battles. The Blur team advised users in a blog post published on February 15 to block OpenSea’s NFT marketplace. because creators cannot receive full royalties on Blur and OpenSea. They must choose either OpenSea or Blur to receive full royalties.
This occurs because OpenSea automatically sets royalties to optional when Blur trading is detected. According to OpenSea, this approach helps to safeguard both creators and the company’s financial line.
Blur versus OpenSea explained
In a series of tweets posted in November 2022, OpenSea explained why it was banning marketplaces like Blur that didn’t require royalties.
3/ One observation: in the economic downturn, many of those looking to sell their NFTs are trying to sell them for as much as they can. Moving their listings to marketplaces that don’t enforce fees is one way to do this.
— OpenSea (@opensea) November 9, 2022
OpenSea’s solution to this problem is to encourage users to avoid the trading of their NFTs on royalty-optional platforms.
After January 2, 2023, smart contract creators must take on-chain action to enforce royalties on OpenSea. Thus, OpenSea requires creators to use on-chain tools to prevent NFT sales on marketplaces without creator royalties. Blur is a royalty-optional platform.
So, in order to get full royalties on OpenSea, users must stop their NFTs from being sold on Blur. If a person doesn’t do this, OpenSea automatically sets royalties on these collections to “optional.”
Briefly, royalty-optional platforms like Blur must be blocked or OpenSea makes royalties optional. Blur disagrees with this point of view. They say that creators, not companies, should decide where and how their work is sold.
“Our preference is that creators should be able to earn royalties on all marketplaces that they whitelist, rather than being forced to choose. To encourage this, Blur enforces full royalties on collections that block trading on OpenSea,” they wrote in the blog post.
They continued, “OpenSea has primarily cited Blur’s policy on old collections without filters as the reason for why Blur should still be filtered by new collections. Their proposed solution, however, has serious flaws….which is why Blur has taken a different approach that has a better chance of solving the issue for good.”
After yesterday’s token launch, it’s not clear how long Blur will be as popular as they are now. But it’s clear that the company is using the situation to get back at its strongest competitor. After Blur’s announcement, some people on Twitter said that the company’s policy change was an inevitable result of OpenSea’s first offensive move against its competitors last fall.
blur coming out guns blazing, will enforce full royalties on collections that block opensea
— foobar (@0xfoobar) February 15, 2023
this was always the obvious outcome of protocols who blacklist their competition, less fun when the competition grows big enough to blacklist you back https://t.co/vWRVfWGOpX pic.twitter.com/Dj7gdI5Prc
Who will win this war is still unknown. One thing is clear for now, though: creators are stuck in the middle.
Content Source: nftnow.com
Cover Image Source: biz.crast.ne
