Yuga Labs, the creators of Bored Ape Yacht Club (BAYC) NFT collection, has decided to sever ties with NFT marketplace OpenSea. This comes in response to OpenSea’s decision to make royalties optional for new collections after August 31, 2023. Yuga Labs stated that it believes in protecting creator royalties and will wind down support for OpenSea’s SeaPort by February 2024. Additionally, OpenSea has announced that it will no longer support the minting and listing of NFTs on the BNB smart chain. These developments will have an impact on OpenSea’s operations and supported chains.
This article originally appeared on www.newsbtc.com
OpenSea, the largest non-fungible token (NFT) marketplace in the world, has recently announced a major shift in its business model. The platform, which has been synonymous with the controversial 2.5% secondary sales fee, is now giving creators the option to forgo royalties entirely.
For those unfamiliar with the concept of royalties in the digital art world, it refers to a percentage of the resale value that the original creator receives each time their artwork is sold on the secondary market. OpenSea’s decision to make this model optional comes as a response to concerns raised by the community and artists who felt that the 2.5% fee was both excessive and unfair.
Many artists argue that once their work is sold, they no longer have control over how it is valued or who it is sold to. By removing the royalties model completely, OpenSea aims to give artists more flexibility and agency over their creative output. This move is seen as a step towards empowering artists to dictate the terms of their own offerings and regain control over the value of their work.
While the traditional model of royalties has been criticized, it has also played an essential role in supporting artists and creators. The 2.5% fee was originally put in place to ensure that artists received compensation for their creations even after the initial sale. However, this model often led to disproportionately high royalties for popular or in-demand artists, while leaving smaller and emerging creators with limited returns.
OpenSea’s new approach acknowledges the need for a more diversified and adaptable business model. By giving creators the option to include royalties or not, artists can now choose the system that best aligns with their needs and goals. This flexibility will enable emerging artists to experiment and find the best way to monetize their art while also providing established artists with the opportunity to explore alternative revenue streams.
The decision to make royalties optional does not mean the end of this practice on OpenSea. In fact, the marketplace will continue to support royalties for users who prefer this model. OpenSea’s co-founder, Alex Atallah, stated that they believe in creative freedom and aim to provide artists with the flexibility to decide what royalties system is best for them. This inclusive approach ensures that all artists, regardless of their stature, have the opportunity to thrive in the ever-evolving world of NFTs.
Critics argue that the removal of royalties might devalue artwork and disincentivize artists from entering the NFT space. However, OpenSea’s move could also encourage a more vibrant and dynamic marketplace that promotes a wider range of creators and styles. This shift may coax artists who were disheartened by the restrictions posed by the traditional model to join the platform and explore the world of NFTs.
As OpenSea continues to grow and adapt, it is clear that the platform is committed to finding innovative ways to support artists while also catering to the demands of the NFT community. By making the royalties model optional, OpenSea is embracing a more inclusive and artist-centric approach, allowing creators to take control of their own success and shape the future of digital art.