OpenSea Approves Creator’s Benefits for NFTs Following Public Complaint
The OpenSea NFT market has officially decided to continue authorizing payments to creators in these digital pools. The decision comes after OpenSea recently received backlash for reconsidering enforcement of creator fees. Cash rewards NFT artists receive every time their work changes hands. This means that creators are paid for their art, even in secondary auctions. For artists, this is very important and gives them more financial freedom to create and produce more art.
OpenSea has expressed concern that if all NFT marketplaces do not pay creators, the majority of buyers will flock to those sites that do not make payments to creators.
This operational pivot of NFT marketplaces will lead creators to forgo the rewards they could have earned for their creativity during market downturns.
In a Twitter thread, the platform revealed statistics that NFT markets that no longer require buyers to pay artist fees have seen an increase in sales compared to OpenSea itself.
MagicEden and LooksRare are among the NFT markets that have waived the creator donation requirement since earlier this year.
“Simply put, this past week, almost half of the creator fees set by the top 20 collections went unnoticed. This accounts for more than $1 million (approx. Rs. 8 crore) for developers left on the table,” OpenSea said in a tweet.
OpenSea has decided to revisit its cash flow requirement after seeing a decline in sales revenue in recent times.
According to a Reuters report, monthly sales volume at OpenSea fell to $700 million (about Rs. 5,500 crore) in June, down from $2.6 billion (about Rs. 20,600 crore) in May and a far cry from January’s peak -five billion dollars (about 40,000 crores).
An appeal from the developer community, however, managed to get OpenSea to withdraw the payment requirement.
Quick and dirty analysis: choosing to enter the Opensea royalty list may not make sense for groups.
Opensea ~92% of all payouts, ~25x more than second place.
As a creator, should you risk 92% of your money just to get the remaining 8%? pic.twitter.com/SvB5ClYx5R
— Jacob (@therealjfrantz) November 6, 2022
If @open it really reduces the money, so many creators who could create good things on opensea, can leave the platform. Wasn’t the sovereignty of the creators one of the important facts, why artists and projects started to create and nfts became so good?:wink:
– raws.eth (@rawsone_) November 6, 2022
The royalty is set by the NFT artist and usually falls between five and ten percent of the second price.