OpenSea Sets Historic Precedent as a Cornerstone NFT Feature Makes Waves

One of the world’s largest NFT markets, OpenSea, is set to end one of the key features that greatly benefited artists. As initially promoted at the onset of the NFT boom, one of the significant advantages of this technology was that artists received a small resale royalty fee for each secondary sale. However, this will no longer be the case on OpenSea.

“Starting from March 2024, artists who publish their collections on OpenSea will no longer be able to demand any type of commission or royalties for each resale. These fees will essentially become tips. When making a purchase, sellers will have the option to give the original artist a small percentage of the sale price, but always on an optional basis.

The decline in NFT trading has prompted major marketplaces to seek other incentives that can attract both buyers and sellers. Blur, the platform that has overtaken OpenSea and positioned itself as the current largest NFT market, applies a modest 0.5% fee on payments. This came into conflict with the intended fees, which could range from 2.5% to 10% in many cases.”

For the time being, OpenSea will continue applying creator fees to certain existing collections. However, starting from August 31, 2023, OpenSea will cease imposing these commissions on new NFTs being listed for sale.

Upon the announcement of this news, many users have expressed their complaints through X, stating that these new measures will primarily disadvantage small artists. Due to these measures, they will no longer receive financial compensation from each resale of their works. On the other hand, OpenSea defends itself and argues that this is the ‘natural evolution of the market.’

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