NFT Creators voiced their anxiety as OpenSea plans to shut down its royalty enforcement tool.
In Brief
The Operator Filter, which was intended to uphold creator royalties, is now on the chopping block at OpenSea.
Starting from August 31, the Operator Filter will no longer prevent other marketplaces from participating. However, NFT collections on blockchains outside of Ethereum will maintain the creator's chosen fees until February 29, 2024.
OpenSea is moving forward with the discontinuation of its Operator Filter, as shared by the company's CEO. announced This tool was launched in November 2022, designed to ensure creators received their royalties and to blacklist platforms that didn't comply.
OpenSea acknowledges the significance of creator fees but discovered that their prior enforcement strategy was not yielding the desired results, especially given the multitude of revenue paths available to NFT creators.
The company revealed that the Operator Filter faced obstacles in establishing itself within the NFT market, with some platforms managing to circumvent it. This development has raised red flags among creators who depend on royalties for supplementary income.
Buyers are expected to find it easier to identify secondary sales that honor the fees set by creators. Furthermore, creators will have the flexibility to choose their preferred fee structure, allowing sellers to customize their royalty payments.
Starting from August 31, the Operator Filter will no longer prevent other marketplaces from participating. However, NFT collections on blockchains outside of Ethereum will maintain the creator's chosen fees until February 29, 2024.
Nevertheless, this change has sparked fears within the artistic NFT community, as many are concerned it could limit their ability to earn passive income off their work.
Where's our payment? It seems like others are receiving theirs while we continue to wait.
Conversely, it's suggested that certain marketplaces could see an increase in adoption if they create better conditions for creators. Consequently, these platforms may need to revise their strategies to keep up with the changing environment.
OpenSea's decision could influence how collectors view different NFT platforms, potentially leading the community to support those that prioritize the enforcement of creator royalties, thus protecting artists' interests.
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Disclaimer
In line with the Trust Project guidelines Valeria works as a journalist for Metaverse Post, where she reports on fundraising efforts, AI technology, the metaverse, digital fashion, NFTs, and anything connected to web3.
