OpenSea Supports Mandatory Reward for NFT Authors

NFT trading platform OpenSea has finally settled on its NFT creator reward position and is launching a tool to help creators earn royalties.

OpenSea CEO Devin Finzer noted that on marketplaces with optional fees, the donation rate to NFT creators has dropped below 20%, and somewhere to zero. Therefore, OpenSea is implementing a tool that will ensure the mandatory payment of commission to NFT authors.

According to Finzer, this is just a snippet of code that allows creators to license new and updated smart contracts. As a result, NFT sales will be limited to royalty-free marketplaces.

“It is understandable that many creators want to be able to charge online. We believe that the choice should be theirs, not the trading floors,” said the head of OpenSea.

Finzer stressed that the platform will only charge royalties for new collections with the consent of NFT authors. He added that creators of collectible tokens can use both their tool and the functionality of any other site to comply with royalties.

“We will host the code for a tool on GitHub that blocks marketplaces that do not support contributor fees. And you have the right to use it or not to use it,” he explained.

The OpenSea CEO added that the tool would not be able to work with existing NFT collections. He invited the authors of existing collections to use new forms of monetization and alternative ways to encourage buyers and sellers to pay remuneration to creators.

Magic Eden announced last month that it was waiving the 2% NFT listing fee as 60% of traders now use royalty-free platforms.