NFT marketplace OpenSea is shaking up its creator royalties structure once again, announcing that it will introduce optional creator fees for new collections from September. OpenSea will disable the Operator Filter disabled on August 31. Let’s take a look at what this means for creators.
- OpenSea removes the Operator Filter
- Creator royalties will be continue until February 29th
- After this, fees will be optional
OpenSea Creator Royalties Update
Until now, the Operator Filter enforced on-chain royalties. This will no longer be the case. However, collections utilizing this filter will still have their creator fee royalties upheld on OpenSea until February 29. After this, fees are made optional. After which these fees will become optional.
OpenSea clarified that creator fees are not disappearing, but they will no longer be enformed. The Operator Filter was introduced in November 2022 to grant creators more control over their collections’ sales and royalties on web3 marketplaces. However, the broad adoption of this tool throughout the web3 ecosystem did not materialize as expected.
Royalties were once a key part of NFTs, ensuring artists’ ongoing income from their creations. Yet, the notion of royalties sparked a debate within the crypto community, especially after token-based platform X2Y2 experimented with 0% creator royalty fees in February 2022. OpenSea had been a strong advocate for creator royalty enforcement, initially implementing royalties of up to 10%. However, tensions arose in February when OpenSea engaged with NFT platform Blur, which enforced a 0.5% creator royalty fee. Consequently, OpenSea adjusted its royalties.
As of July 5 this year, NFT royalties had reached their lowest levels in two years. OpenSea’s decision to make creator fees optional for new collections marks a significant shift in its approach to royalties, reflecting the ongoing evolution and exploration of revenue models within the NFT space. The move away from mandatory royalties signifies the market’s attempt to find a balanced approach that benefits both creators and buyers while accommodating the diverse needs and preferences of participants in the NFT ecosystem.