More

    Breaking: OpenSea Cuts Creator Royalties Amid Market War!

    In the thread published on Friday, February 17, Opensea announced that it will temporarily cut creator royalties

    And the NFT ecosystem is in a current whirlwind. At the moment, there is an incredible increase in competition for market dominance.

    ESPECIALLY with the emerging rivalry between Blur and OpenSea.

    The latter had to act fast.

    What they did: 0% trading fees for NFTs.

    Mind you, before this, OpenSea charged %2.5. And that constituted a large portion of its revenue.

    According to Dune, the majority of marketplace volume has moved to a zero-fee environment.

    In a nutshell, Buyers don’t want to pay royalties. And since marketplaces are built on buyers, the former will choose to say goodbye to creator royalties.

    Fueled by that, the #1 marketplace decided to make “some big changes” 

    In other words, as a buyer, you are now free to decide whether or not you want to go by a creator’s royalty preferences. 

    But, since royalties from sales are how project creators make their revenue following their initial token sale, this might prove to be a serious issue. 

    Blur Spurs Changes In OpenSea Creator Royalties

    The competitive spirit that Blur has brought distinctively reminds us of the battle between exchanges in the past years. 

    The decision for OpenSea to cut creator royalties was spurred on by the fact that Blur encouraged its content creators to block OpenSea to earn full royalties.

    At least, that’s what it looks like… 

    This along with the token airdrop put Blur way ahead of its once-dominant competitor… 

    So, OpenSea praised Blur’s decision to roll back creator earnings and prevent creators from making a false choice between receiving full royalties on OpenSea or Blur. 

    Next step, OpenSea updated its operator filter to proceed with sales from different NFT marketplaces that hold the same policies as Opensea.

    What People Are Saying:

    Luca Netz, CEO of Pudgy Penguins, believes that when Opensea cut creator royalties and moved to optional, this will ultimately put them in a bad situation. 

    He tweeted “This is going to have the opposite effect that you want it to have.”

    Is he right to think that the decision for Opensea to cut creator royalties is wrong?

    It’s worth noting that when Magic Eden did the same thing, it resulted in them having to fire 22 people from their jobs due to insufficient funds. 

    So, what will happen with OpenSea?

    Other people suggested that only a marketplace token can save them from this horrible decision. 

    Even LooksRare cracked a token airdrop joke… 

    Now, What?

    In comes X2Y2 trying to gain momentum off of the ongoing feud. 

    In a somewhat ‘petty’ but ‘might prove to be effective’ move in our opinion, X2Y2 suggested their creators block both competitors… 

    The solution they suggested prevents Blur from using Seaport’s loophole to skip the creator’s royalties. 

    In true fashion, they said: After all, creators should have the final say on royalties, not marketplaces!

    Finally, the OpenSea creator royalties decision just shows how they’re trying to play catch-up. Whether this will backfire or not is still up for debate.

    In our opinion, marketplaces should focus more on making the user experience better. Only then can they truly one-up one another.

    Frank DeGods shared the harsh truth with his followers via a tweet…

    What do you think of this ongoing war? Will marketplaces finally tailor their options to befit the community? Or will they continue to put their benefit first?

    As always, stay tuned for more!

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Stay in the Loop

    Stay in the loop with blockchain Witcher and get the lastest updates!

     

    Latest stories

    You might also like...