OpenSea Surrenders NFT Royalty Enforcement Following Overtake From Blur.io

OpenSea Alters Course on NFT Royalties

NFT marketplace OpenSea has set a new course for its royalty enforcement strategy. As of August 31, OpenSea will retire its Operator Filter, a tool designed to enforce royalties, and transition towards optional royalties for all secondary sales involving new collections. 

Launched in November 2022, the Operator Filter was envisioned as a mechanism to empower creators by requiring sales only through web3 marketplaces committed to enforcing artist fees. The move aimed to support artists' sustainable income streams. 

However, the decision to bid farewell to enforced creator royalties highlights the challenges of forging consensus within the crypto community. Once heralded as a viable application for NFTs, creator royalties have now come under scrutiny, especially following the experiment by X2Y2 in February 2022, which involved slashing creator royalty fees to 0%.

Worth noting that royalties will continue to apply to existing collections using the Operator Filter through February 29, 2024, after which they will become optional.

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OpenSea Faces Tough Competition From Blur

NFT royalties recently hit a two-year low by July 5, possibly reflecting a broader shift in the community's priorities. The competitive landscape has also evolved, with platforms like Blur surging ahead in trading volume, compelling OpenSea to reevaluate its strategies.

OpenSea had initially taken a firm stance, championing creator royalty enforcement and introducing fees of up to 10%. Yet, tensions with Non-Fungible Token (NFT) platform Blur prompted a rollback in February, with OpenSea reducing royalty percentages. 

As of Aug. 4, NFT marketplace Blur dominated OpenSea in trading volume holding more than 63% of the total NFT trading volume.

This pivotal change in stance underscores OpenSea's quest to adapt to an ever-changing NFT environment. In parallel, OpenSea maintains its 2.5% platform fee on each NFT transaction, setting itself apart from competitors. 

While OpenSea Pro users can bypass this fee under specific conditions tied to creator royalties, the broader implications of these decisions are already generating mixed reactions across social media.