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HomeNFTOpenSea Introduces New "On-Chain" Approach For Collecting NFT Royalties

OpenSea Introduces New “On-Chain” Approach For Collecting NFT Royalties

OpenSea, a marketplace for nonfungible tokens (NFTs), seems to have taken a side in the ongoing debate about NFT royalties by releasing a new “on-chain” tool that helps creators get their royalties.

According to CoinGecko, the NFT marketplace, which controls 66% of the market share in NFT marketplaces, hasn’t said much about royalties and enforcement while others in the field have been making their own rules over the past few months.

In a blog post dated November 6, OpenSea CEO Devin Finzer said that the company has “seen the voluntary creator fee payment percentage drop to fewer than 20%” in markets where payments are optional, while in other marketplaces creator fees are “just not paid at all.”

OpenSea to add more new instrument

The chief executive officer of OpenSea made the announcement that the marketplace has begun offering a new instrument that would make it possible for producers to provide “on-chain enforcement” of their royalties.

Finzer referred to the application as a “simple code snippet,” and he said it enables content producers to impose royalties on current upgradeable smart contracts as well as new and future NFT collecting smart contracts. Additionally, the code will only allow sales of NFTs on marketplaces that need creator fees to be collected.

Finzer also said that OpenSea would enforce royalties for any new collections by making use of an on-chain enforcement mechanism. However, this will not be the case for any new collections that do not opt-in for this service. Because it will be hard to set up, the tool will also not be able to be used with existing NFT collections for the time being. This entails the possibility of continuing to enforce off-chain fees for certain subsets of collections, allowing creator fees to be optional, and collaborating on other on-chain enforcement options for creators. In addition, this entails the possibility of allowing optional creator fees.

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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