A New Dawn for NFT Creators: OpenSea's Royalty Shift and Vodworks' Solutions
January 15, 2024 - 2 min read
In a recent turn of events, OpenSea, once a trailblazer in the NFT marketplace, announced its transformation with OpenSea 2.0, accompanied by a workforce reduction. The pivot involves a major shift in the way creators receive royalties, impacting both smaller and larger players in the NFT space.
The OpenSea Evolution
OpenSea, launched in 2017, once symbolised the innovation of NFTs. However, facing challenges like the crypto winter and a drop in their capitalisation from $13bn to $1.3, the platform made tough decisions, including laying off 50% of its staff. In a surprising move, OpenSea retired its operator filter, a feature allowing creators to blacklist marketplaces that neglected royalty enforcement.
As the NFT market experiences a decline, OpenSea's decision to make royalties optional reflects broader industry trends. Starting March 2024, sellers can choose to give artists a percentage of the original sale price, moving away from the traditional resale model. This shift follows the footsteps of Blur, the current NFT volume leader, enforcing a minimum .5% royalty fee on most collections.
The Impact on Creators
NFT creators, both big and small, heavily rely on royalties for passive income. Traditionally set at 2-10% of a sale, these perpetual kickbacks become a crucial aspect of an artist's revenue stream. The change raises concerns about oversaturating the market and diminishing the value of NFTs, compelling creators to explore new platforms supporting royalties.
Vodworks: Your Solution to NFT Challenges
As a leading international software development company, Vodworks offers solutions to navigate the evolving NFT landscape. Our platform KumoCore provides flexible digital asset management, allowing creators to customise functionality, metadata, and design. Chain and token agnostic, our platform supports various technologies and currencies, ensuring adaptability to unique business needs.
We have introduced heavily customisable fees and royalty controls that allow creators and platform operators to not only control their revenue streams but to make them more predictable too. With customisable wallet control, accessible via API or interface, and versatile pay-in/pay-out payment flows, Vodworks can simplify the transition from OpenSea. Our user-friendly design removes complexity, offering a seamless experience for creators and collectors alike. Built-in KYC (Know Your Customer) modules and wallet policies ensure legal compliance and smooth operations in any jurisdiction.
Conclusion:
As the NFT industry undergoes transformative changes, the question of royalties becomes a matter of morality. Rather than an outright ban, many platforms, including OpenSea, opt for flexibility, leaving the choice to collectors. While profit-focused collectors may reject royalties, those aligned with the ecosystem's ethos may choose to honour them.
At Vodworks, we're committed to empowering creators in this evolving landscape. Whether you're seeking a custom platform or want to join one with lower fees and bigger royalties, we're here to ensure your journey in the NFT world is both smooth and lucrative.
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