Many creators and collectors were curious about OpenSea’s attitude on creator royalties before November. OpenSea’s statement only prompted further questions, sparking a creative community pushback.
OpenSea CEO Devin Finzer stated that the company analyzed market data and spoke with producers before making the statement. Finzer blamed the “surprising” quantity of criticism on the “ambiguity of how we were handling existing collections.”
“Our goal there was really to start a conversation with creators. And I think we really did, in many ways,” said Finzer. “A lot of people came out super active, wanting to tell us their perspective. In some ways, while it was a mixed reaction, it was actually a really healthy discussion.”
OpenSea has always recognized creator-set secondary fees, even though they can’t be enforced on-chain. In recent months, competing platforms have lowered royalties to allow cheaper transactions for traders, flipping the NFT sector and throwing a curveball for creators already battling with declining prices and demand.
OpenSea declared on November 5 that it was weighing its options while communicating with NFT. A new tool allows Ethereum NFT project authors to blacklist unpaid internet marketplaces. OpenSea suggested making creator royalties optional for investors in current projects.
Artists felt insulted. Bored Ape Yacht Club’s creators called OpenSea’s concept “not great,” while Deadfellaz co-creator Betty said the company’s correspondence with her was “misleading” The Hundreds canceled the NFT release.
OpenSea planned to decide by December 8 but acted days later. Despite “strong and obvious” customer reaction, the business tweeted on November 9 that it would continue to demand creator royalties on all NFT projects.
Creatives and collectors backed OpenSea’s decision, but it wasn’t easy financially. OpenSea believes royalties are important, but some traders are voting with their crypto on platforms without royalties.
Finzer said that establishing a new on-chain enforcement strategy to ban particular marketplaces was part of this mindset.
OpenSea’s actions are observed. OpenSea’s “brave move” was praised by X2Y2 when it declared it will pay creator royalties on all projects. OpenSea has removed X2Y2 from its blocklist, allowing NFTs made using it to be traded.
“It’s a demonstration that leadership in the space can really drive forward better systems and better technology,” Finzer said, “and that if you lead with solutions, people will follow suit and support those.”
He called the initial blocklist iteration “v0” and said it could be improved by involving the community in a decentralized effort to increase royalty marketplaces. If more marketplaces follow OpenSea’s lead, Finzer says the goal will be an empty blocklist.
If more marketplaces follow OpenSea’s lead, Finzer says the goal will be an empty blocklist.
Leave this field empty if you're human:
