The famous OpenSea NFT marketplace is planning new measures to enforce license fees. Although it initially seemed to be in the interest of the artists, it was precisely these artists who expressed concerns about the project.
In a November 6 tweet, OpenSea finally spoke out in the ongoing discussion about licensing fees for NFTs.
“By creators for creators” – NFT royalties
Arguably the most well-known NFT market, has taken the first steps to launch a new principles-based approach to royalty enforcement.
In a blog post, the company wrote:
Undoubtedly, many creators want to impose levies on the resale of their works via the blockchain. In our view, this should be decided by the artists – not the markets.
Therefore, after November 8, OpenSea plans to launch a tool to collect chain license fees on newly created collections. This should allow authors to participate appropriately in the promotion of their art.
In short: NFT Artists would thus be equipped with tools allowing them to better control their business model..
Opensea does not plan any changes to existing NFT collections at this time.. Additional feedback from the community should help develop a sustainable strategy, which is not expected to be implemented until after December 8th.
However, Opensea CEO Devin Finzer said in a blog post that it won’t be easy. The month-long test phase is intended to help the market decide whether fees for authors should be reduced in the long term or whether an optional fee system would be the best solution.
What do Opensea users think?
All of this development got off to a rocky start: NFT marketplaces, like Solana’s Magic Eden, moved to a royalty-optional model in October. With this model, buyers and sellers could choose what percentage of the sale proceeds should go to the original artist.
Shortly after this model was introduced, however, early performers expressed concern. So called one of the artists it’s a sad day for Solana and even affirmed said update would stifle his project.
Similar comments were made about OpenSea’s ambiguous milestones. However, Finzer shed some light on the matter:
“It has become clear that the current mechanisms for enforcing royalties are not sustainable – neither for the markets that enforce them nor for the creators themselves, which is even more important.“
For a while, OpenSea dominated the NFT market, but lately it has seen a significant drop in its trading volume. As BeInCrypto reported last week, the volume of transactions on the NFT market has decreased down a staggering 94% since hitting its all-time high of $4.8 billion in January 2022.
Could the real motive behind OpenSea’s creation fee be to stabilize sales volume? Twitter user Bobby Hundreds, co-founder of fashion brand The Hundreds and the Adam Bomb Squad NFT project, clearly believes this:
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