OpenSea launches on-chain tool for enforcement of NFT royalties
OpenSea, the leading non-fungible token (NFT) marketplace that continues to take the initiative to have creators earn royalties on secondary sales as competitors take a different outlook, has announced a new tool the platform says will help creators take charge of their royalty earnings.
In an announcement on 6 November 2022, OpenSea CEO Devin Finzer said the tool offers creators an on-chain functionality to enforce fees. This will apply to new NFT collections and upgradable contracts, Finzer noted in a blog post.
“Our initial on-chain tool is a simple code snippet that creators can add to future NFT contracts, as well as existing upgradeable contracts. This code restricts NFT sales to marketplaces that enforce creator fees.”
The on-chain enforcement tool will go live on Tuesday 8 November, 2022 at 12:00 pm ET.
A ‘first step’ for creators to continue getting fees
OpenSea’s initiative comes as creator fee payments on platforms that allow for voluntary royalties have fallen markedly over the past few months. According to Finzer, the rate is now below 20% where secondary sales NFT royalty payments are voluntary and zero on platforms that do not support the feature.
The on-chain tool is a “first step,” that the NFT marketplace will look to build on via various engagements with the community, particularly on what solutions can be pursued regarding existing collections. These options are taken as the OpenSea team realise it can be difficult to enforce on-chain royalties on existing collections.
There will be no changes to existing collections up until 8 December, 2022 at least, Finzer added in the blog post.
After 8 December, considerations for royalty payments will include continuing with off-chain fees for some NFT subsets, introducing optional creator fees, and seeking collaborations with other NFT marketplaces on on-chain enforcement options.
As Invezz reported last week, OpenSea has launched a new security tool that will help auto-detect suspicious transactions and freeze stolen NFTs.
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