OpenSea asserts that the average fees earned by the top 20 NFT collections plummeted from 77% to 56% within a month.
OpenSea, a New York-based online marketplace for non-fungible tokens (NFTs), has pledged to continue enforcing royalties on all NFT collections.
According to a fifteen-tweet Twitter thread published on November 9th, the firm pledged to secure long-term royalties for creators, adding that since October 12th, the average percentage of revenue paid by top NFT collections has plummeted to 56%.
OpenSea studied current market volatility and its effect on creators in its release, stating that “this field is headed toward much lower fees given to producers.” Moreover, OpenSea added:
” This week, we have been astounded by the passion exhibited by both producers and collectors. We were seeking your feedback, and we received it in a resounding manner.
OpenSea surprised the NFT community by declaring its intention to enforce “creator fees only for new collections” via on-chain enforcement mechanisms on November 5. The startup followed previous NFT exchanges that reduced creator costs for traders.
NFT creators receive 5–10% of the secondary sale price.
The company requested citizen input until December 8. OpenSea considered making fees optional for merchants, enforcing them on collection selection, and creating a new community-supported enforcement.
Not all renowned creators liked OpenSea’s plans. In a blog post, Bored Ape Yacht Club (BAYC) founders Wylie Aronow, Greg Solano, and Kerem Atalay called OpenSea’s concept “not amazing,” noting that payments for certain NFT authors were “the single most essential reason that lured them into the ecosystem.”
Read More: Review of the OpenSea NFT Marketplace (2022)
The Hundreds canceled its November 7–13 OpenSea NFT release. “Waiting to see if OpenSea would take a stand to protect creator royalties for existing collections,” said The Hundreds co-founder Bobby Kim.
OpenSea may have abandoned the idea due to NFT community resistance.