Well-known NFT marketplace, OpenSea, has released its new royalty strategy for non-fungible token creators, introducing a new on-chain tool.
OpenSea: the new on-chain tool dedicated to royalties for NFT creators
Over the weekend, the most popular NFT market, OpenSea, released its new royalty strategy for non-fungible token creators.
2/ It’s clear that many creators want the ability to apply in-channel fees and we believe that choice should be theirs, not a marketplace.
So we’re building tools that we hope will balance the scales by giving creators more power to control their business model.
—OpenSea (@opensea) November 6, 2022
“There has been a lot of discussion over the past few months about NFT creator business models and whether creator fees (“royalties”) are viable. Given our role in the ecosystem, we want to take a thoughtful and principled approach to this and lead with solutions.
It’s clear that many creators want the ability to apply in-channel fees and we believe that choice should be theirs, not a marketplace. So we’re building tools that we hope will balance the scales by giving creators more power to control their business model.
Essentially the new on-chain tool that OpenSea is introducing is a simple snippet that creators can add to future NFT contractsas well as existing updatable contracts.
This way, when the NFT creator decides whether or not to add this code snippet, OpenSea will apply creation fees for new collections that use a chain application toolwithout applying them for new collections that do not implement a chained application.
The new code will be limit NFT sales to marketplaces that charge creation feesblocking the trading of these NFTs on listed exchanges with zero or optional fees.
OpenSea and its view on NFT creator royalties
Co-founder and CEO of OpenSea Devin Finzer Underline market position on NFT royalties.
Basically, since its inception, OpenSea has supported royalties for NFT creators to attract more and more. In recent months, however, with other marketplaces making them optional, the voluntary payment of these fees for creators has been reduced to less than 20%. Furthermore, Finzer points out that on other marketplaces, royalties for creators are not paid at all.
This situation has prompted the most popular NFT market place to want to take a stand on this issue. with its new on-chain tool, which leaves directly in the hands of the creator the addition or not of royalties.
In this regard, Finzer States:
“Given our role in the ecosystem, we know it is critical for us to take a thoughtful and principled approach to addressing this issue and leading with solutions. Clearly, many creators want to be able to apply on-chain fees; and fundamentally, we believe the choice should be theirs – it shouldn’t be a decision made for them by the markets. So we’re looking to balance the scales by empowering creators, giving them tools to control their business model.
The new trading system is available for new NFT collections
Starting at 12:00 p.m. (ET) on Tuesday, November 8OpenSea will charge creation fees only for new collections using the chain app tool.
As for the existing collectionsno changes will be made for the moment, given the difficulty, at least until December 8, 2022.
Indeed, OpenSea says that anything that happens after that date will be evaluated in that month of application of the new trading system for NFT creators.
Overall, Finzer stresses that he is aware that the new system will involve creators first and foremost, but also collections and communities. This change was intended to support royalties is considered an important web3 innovation that helps creators monetize their work more effectively.
Indeed, Finzer points out that the marketplace will not be able to impose its economic model on creators via the on-chain functionality.
The tool to prevent scams
Recently, OpenSea jointly with Web3 Builders contributed to a initial funding of $7 million and launch of TrustCheckthe tool that prevents scams.
It’s a free web3 security tool for end users available to protect them from scams. TrustCheck is a Chrome browser extension that instantly analyzes the risk of a wide range of crypto transactions, such as the interaction of NFTs or smart contracts as well as token exchanges.
By simulating transactions before they occur, TrustCheck runs its checks on the company’s machine learning engine and after analyzing the data, provides users with personalized real-time security recommendations before finalizing the crypto transaction.
The funding round involving OpenSeain the same way Road Capital and other venture capital and angel investorswill fuel the development and expansion of Web3 Builders’ B2B enterprise product.