In line with other platforms like MOOAR, Opensea wants to reshape its operation. In particular, by proposing to protect the royalties of content creators. An element that worries some users while the trend is rather to optionalize them.
A model for creators, by creators!
It was through a tweet that the platform announced its intentions. Those of proposing a new compensation model for NFT creators.
There’s been a lot of discussion over the past few months about business models for NFT creators & whether creator fees (“royalties”) are viable.
Given our role in the ecosystem, we want to take a thoughtful, principled approach to this topic & to lead w/ solutions. 🧵
— OpenSea (@opensea) November 6, 2022
There has been a lot of discussion over the past few months about business models for NFT creators and the viability of creator royalties. Given our role in the ecosystem, we want to take a thoughtful and principled approach to this.
Through this policy change, the Opensea platform intends to put creators back at the center of the chessboard. And above all, allow them to choose. As detailed in the blog post recently published on the platform:
Clearly, many creators want the ability to enforce on-channel fees; and fundamentally, we think the choice should be theirs – it shouldn’t be a decision made for them by the marketplaces.
More concretely, the platform will deploy a copyright enforcement tool. This will be available tomorrow noon. The tool should allow users to improve their rights in terms of collecting royalties. The tools made available will notably enable creators to better control their economic model. Please note that the copyright application will only be valid for new NFT collections. After December 8, the platform plans a complete overhaul and the incorporation of old collections, for a global policy.
A measure that has received many criticisms!
While the norm is rather to reduce or even eliminate royalties, Opensea’s decision goes against the grain. And that, Devin Finzer, the CEO of Opensea has understood. It is for this reason that the Opensea policy will be offered as a test version for a period of one month. After the full-scale test, the project leaders will make a decision. And will decide whether to reduce long-term creator fees or move to a royalty system, as currently proposed.
Good to know : A few days ago, the MOOAR platform announced its intentions and aspirations in terms of business model. If it is a question of proposing the payment of a monthly subscription for users, MOOAR is also looking for solutions to better respect the royalties of content creators.
Be that as it may, other methods seem to be more attractive to players in the NFT market. Last October, the Magic Eden platform adopted a optional royalties. This allowed sellers and buyers to agree together on the percentage of the sale that would go to the artist.
Bad times for NFTs!
Affected head-on by the bear market, the NFT market has been struggling for several months. If the Opensea platform could boast of a trading volume close to 5 billion dollars in January 2022, it has reduced by nearly 95%. Many users, like the Bobbyhundreds Twitter account, believe that Opensea’s policy change is a way to counter the drop in its activity:
Remember why this is all happening: OpenSea is losing market share to other marketplaces that are excising creator royalties. So, this solution is a convenient value proposition. It blocks their competitors AND ensures that artists on their platform get paid on secondary sales.
— bobbyhundreds.eth (@bobbyhundreds) November 6, 2022
Remember why this is all happening: OpenSea is losing market share to other marketplaces that are removing creator royalties. This solution is therefore a practical value proposition. It blocks their competitors AND ensures artists on their platform get paid on secondary sales.