The largest marketplace for non-fungible tokens (NFTs) says it will continue to impose creator royalty fees on digital collectibles sold on its platform.
OpenSea pledges to continue enforcing creator fees as the industry sees an increasing number of digital collectible marketplaces that are ditching the fees.
“We will continue to enforce creator fees on all existing collections.”
Prior to the announcement, OpenSea considered making creator fees optional, but it observed that collectors are more likely to buy without the royalties.
“This isn’t theoretical, it’s happening now, and the trend is accelerating. Here’s the data:
Simply put, in the last week, almost half of the creator fees set by the top 20 collections were ignored. This amounts to well over $1 million for creators left on the table.”
But OpenSea says that regardless of its policies, the industry is moving towards giving fewer rewards to creators. It did offer some suggestions.
“Creators – there are immediate steps you can take for existing collections:
1) You can build paths to on-chain enforcement for your existing collections (we’re here to help).
2) You can develop more incentives for your communities to continue to pay fees (and we can show these in our product.
3) You can refuse to link to fee-avoiding marketplaces from your project websites.”
OpenSea is currently working with record label giant Warner Music Group to help artists build their communities on Web3 and launch their NFT projects as part of a deal announced in September.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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