Leading NFT Marketplace OpenSea explains why they continue to enforce creator fees
The largest marketplace for non-fungible tokens (NFTs) says it will continue to charge creator royalty fees on digital collectibles sold on its platform.
Open sea promises to continue enforcing creator fees as the industry sees a growing number of digital collectibles markets drop the fees.
“We will continue to enforce creator fees on all existing collections.”
Before the announcement, OpenSea considered making creator fees optional, but they observed that collectors are more likely to buy without royalties.
“This is not theoretical, it is happening now, and the trend is accelerating. Here is the data:
Simply put, in the last week, almost half of the creator fees set by the top 20 compilations were ignored. This adds up to well over $1 million for creators left on the table.”
But OpenSea says that regardless of its guidelines, the industry is moving toward giving fewer rewards to creators. It offered some suggestions.
“Creators – there are immediate steps you can take for existing collections:
1) You can build on-chain enforcement paths for your existing collections (we’re here to help).
2) You can develop more incentives for your communities to continue paying fees (and we can display these in our product.
3) You may refuse to link to tax avoidance marketplaces from your project websites.”
OpenSea is currently working with record label giant Warner Music Group to help artists build their communities on Web3 and launch their NFT projects as part of a deal announced in September.
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Featured Image: Shutterstock/Bro Crock
