OpenSea NFT Marketplace Introduces Updates to Creator Fees and Royalty Guidelines

OpenSea, a prominent non-fungible token (NFT) marketplace, has introduced significant alterations to its fee structure, making creator fees optional for newly created collections.

In particular, OpenSea has decided to retire the Operator Filter, a tool previously used to enforce creator royalties on their platform.

Going forward, OpenSea will transition to a model where royalties become optional for all NFT sales on the secondary market, which constitutes the standard marketplace where NFT enthusiasts trade and sell among themselves.

Furthermore, OpenSea has outlined that pre-existing NFT collections employing the Operator Filter will continue to have their preferred royalties enforced until February 29, 2024. For NFT collections already in existence that do not utilize the Operator Filter, there will be no alterations to their current setup.

This announcement was made via a blog post by OpenSea's co-founder and CEO, Devin Finzer, on a Thursday. These changes are set to take effect starting from August 31.

The recent changes made by OpenSea can be attributed to three key factors, as stated by the company:

1. Firstly, OpenSea pointed to a lack of community support for its Operator Filter. They expressed that the success of this feature relied heavily on widespread backing from the NFT ecosystem, which unfortunately did not materialize.

2. Secondly, OpenSea emphasized the importance of preserving the freedom of choice concerning creator fees. They highlighted that this principle holds significant value for both NFT collectors and creators. OpenSea also stressed the notion that true ownership of an NFT should grant users the autonomy to decide whether to retain, sell, or even eliminate it without external interference.

3. Lastly, OpenSea clarified that their creator fees represent just one of the numerous revenue avenues available to NFT creators. They conveyed their commitment to fostering innovation across various use cases and business models within the NFT ecosystem, rather than confining it to a single approach.

It's worth noting that OpenSea has maintained its position as the dominant NFT trading marketplace for an extended period, currently holding the second-largest ranking in terms of 30-day trading volume, according to data from DappRadar.

Photo by Behnam Norouzi on Unsplash