The famous OpenSea marketplace has chosen to temporarily remove its 2.5% fee it charged on the sale of NFTs. Furthermore, it raises the issue of the payment of “creative revenues”, which are not always fully applied by its competitors.
OpenSea temporarily waives 2.5% fee
The famous marketplace OpenSea has chosen to temporarily remove the 2.5% fee applied to the sale of non-fungible tokens (NFT). This maneuver is particularly necessary in order to fight the platform’s increasing number of competitors such as Blur, which has just completed the airdrop of its token:
We’re making some big changes today:
1) OpenSea fee → 0% for a limited time
2) Moving to optional creator earnings (0.5% min) for all collections without on-chain enforcement (old & new)
3) Marketplaces with the same policies will not be blocked by the operator filter
—OpenSea (@opensea) February 17, 2023
Note, however, that OpenSea may apply up to 0.5% in fees if the creators’ income is set between 0 and 0.5%, so as to “discourage inorganic trading volume“. In addition, there will be another exception for collections that do not apply creator income from an on-chain methodin which case a minimum 0.5% charge will be applied in order to be donated to said creators :
“When selling an NFT using OpenSea, if the collection does not use an on-chain application method, the minimum creator revenue will be 0.5%. Sellers also have the option to add additional creator revenue to any transaction. »
Indeed, to automatically receive his royalties when reselling NFTs on the secondary market, a creator must set this directly in its collection settings. Platforms like OpenSea allow this:
Setting up creator fees on OpenSea
Nevertheless, if such solutions allow OpenSea to automatically return royalties to creators, the market has seen the emergence of platforms that did not always fully take this into account.
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Creators in danger?
Beyond the marketing aspect of this approach, OpenSea detects a change in trend with the new NFT marketplaces arriving on the market: a cost-free environment. The problem underlined is that this dynamic leads the platforms to not being able to fully pay the royalties due to creatorsbecause there are no fees to pay.
OpenSea estimates that 80% of the volume on NFTs is affected by this problem, at least in part:
6/ Today, ~80% of total ecosystem volume does not pay full creator earnings, and the majority of volume (even accounting for inorganic activity) has moved to a zero-fee environment.
This requires a change.
—OpenSea (@opensea) February 17, 2023
While NFTs are precisely supposed to allow automation of the payment of sums due to content creators, this “zero fees” policy initiated by the new platforms may raise questions. Although a reduction in their own costs is one of the levers to attract more people, doing so at the expense of the artists can be seen as contrary to the Web3 philosophy.
From this observation, it will be interesting to follow the future developments of the NFT ecosystem, to answer these questions.
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