OpenSea launches new “on-chain” tool to enforce NFT royalties | The Financial Express

OpenSea launches new “on-chain” tool to enforce NFT royalties

NFT marketplace, which, according to CoinGecko, controls 66% of the market share in NFT marketplaces

OpenSea launches new “on-chain” tool to enforce NFT royalties
Finzer also stated that OpenSea will use an on-chain enforcement tool to enforce royalties for new collections

The non-fungible (NFT) market OpenSea appears to have weighed in on the NFT royalties debate, launching a new “on-chain” tool to assist creators in enforcing royalties, as reported by Cointelegraph.

Cointelegraph further noted that the NFT marketplace, which, according to CoinGecko, controls 66% of the market share in NFT marketplaces, has been relatively silent on the issue of royalties and enforcement, while others in the space have been implementing their own strategies in recent months.

In a blog post published on November 6, OpenSea CEO Devin Finzer stated that in marketplaces where fees are optional, they have “watched the voluntary creator fee payment rate dwindle to less than 20%,” while in others, creator fees are “simply not paid at all.”

“There’s been a lot of discussion over the past few months about business models for NFT creators and whether creator fees are viable. Given our role in the ecosystem, we want to take a thoughtful, principled approach to this topic and to lead with solutions, “OpenSea informed.

The tool, according to Finzer, is a “simple code snippet” that allows creators to enforce royalties on new and future NFT collection smart contracts, as well as existing upgradeable smart contracts. In addition, the code will limit NFT sales to only marketplaces that charge creator fees.

Finzer also stated that OpenSea will use an on-chain enforcement tool to enforce royalties for new collections, but will not do so for new collections that do not opt-in.

(With insights from Cointelegraph)

Also Read: SEC makes issuance of subpoena for influencers promoting HEX, Pulsechain and PulseX

Follow us on TwitterFacebookLinkedIn

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 07-11-2022 at 13:50 IST