OpenSea introduces a blockchain-based solution for enforcing NFT royalties
At this time, the royalty enforcement tool only applies to new NFT collections; a decision about current collections will be taken at a later point.
Nonfungible token (NFT) marketplace OpenSea seems to have taken a stance in the NFT royalties controversy, unveiling a new “on-chain” tool to assist creators with enforcing royalties.
The NFT marketplace, which according to CoinGecko, controls 66% of the market share in NFT marketplaces has remained largely mute on the matter of royalties and enforcement.
In a blog post dated 6 November, OpenSea CEO Devin Finzer stated that in markets where costs are optional, the voluntary creator fee payment percentage has decreased to less than 20%, whilst in other marketplaces, creator fees are “just not paid at all.”
The CEO of OpenSea revealed that the marketplace has released a new mechanism that would enable authors to enforce their royalties “on-chain.”
Finzer defined the tool as a “simple code snippet” that enables producers to impose royalties on current and future NFT collection smart contracts and existing smart contracts that may be upgraded. Additionally, the code will limit sales of NFTs to those markets that impose creator fees.
Finzer said that OpenSea would enforce royalties for new collections via an on-chain enforcement mechanism, but not for new collections that have not opted in.
Finzer clarified in an accompanying Twitter Spaces that OpenSea “doesn’t require anybody to utilise our unique solution,” thus developers are free to deploy “whatever solution they like.” Due to development difficulties, the tool will not be implemented for current NFT collections at this time.