OpenSea Roils NFT Market With 'Enforcement Tool' For Creators
NFT Marketplace to Let Artists Prevent Sale of Work on Non-Royalty Sites
By: Samuel Haig •Byte
NFT creators are finally getting a little financial help. At least that’s the pitch from OpenSea.
On Tuesday, OpenSea, the No. 1 NFT marketplace, plans to release an “on-chain enforcement tool” that will let artists stop their work from being sold on sites that do not distribute royalty fees.
Royalties have become a flashpoint in the NFT space as marketplaces struggle to balance revenue growth and financial rights for artists. Last month, LooksRare irked NFT creators by dropping mandatory royalty fees.
While OpenSea’s initiative may sound like a boost for creators, many in the NFT community are concerned it will lead to artists blacklisting collections.
“After speaking with OpenSea, it feels like there is no plan and no clear answers were given in regards to existing collections and artist’s royalties,” tweeted Betty_NFT, the co-creator of Deadfellaz. “Communication has been misleading and facts are not there… They do have a real opportunity to empower artists and help protect the value of creative work.”
OpenSea’s tool allows creators to specify which addresses can make token transfers on their behalf, excluding NFT marketplaces that do not distribute royalty fees. OpenSea will only enforce creator fees for new collections that use an on-chain enforcement tool.
“It’s clear that many creators want the ability to enforce fees on-chain & we believe that choice should be theirs – not a marketplace’s – to make,” OpenSea tweeted on Sunday “We’re building tools we hope will balance the scales by putting more power in creators’ hands to control their business model.”