OpenSea breaks silence on NFT property rights, but creators don’t like what they hear – decrypt

Briefly

  • OpenSea has shared its plans for NFT creators’ property rights, amid a growing trend of competing markets not respecting them.
  • The prominent creators suggest that OpenSea’s messaging is unclear and potentially misleading, and that this part of its plan is anti-competitive.

Many NFT platforms turned away Honoring royalties set by the creators in recent weeks, the market major OpenSea has kept quiet on the subject, seemingly considering its options. Saturday night, and $13.3 billion startup She finally showed her hand – but the newly articulated OpenSea strategy doesn’t get along with many of the notables web 3 creators.

in Twitter threadOpenSea shares what it calls a “thoughtful and principled approach.” NFT Royalties, including introducing a system that would allow creators of new projects to blacklist certain markets that do not require merchants to pay royalties. This regulation takes effect on November 8th.

OpenSea said it is still studying what to do about existing NFT projects, and that it will get additional feedback from the community before Self-imposed deadline is December 8th.. After that date, the market will make a decision – which may eventually include making royalty payments optional for traders, as some other markets have done.

“In transparency, consideration of what will happen after December 8th is wide open—[with] Options range from continuing to charge off-chain fees for some subsets of groups, to allowing optional fees for creators, to collaborating on other on-chain enforcement options for creators,” the market tweeted.

in Blog postOpenSea co-founder and CEO, Devin Finzer, explains the company’s history of honoring NFT equity — typically a 5% to 10% fee set by the originator, which the seller pays in any secondary market sale. These franchise expectations aren’t fully actionable on-chain, yet the biggest markets (including OpenSea) usually honor them.

In recent months, many emerging and competing markets have tried to grab market share by offering royalty-free trading, or making it optional. almost full Solana NFT . Market Now working with those modelsAfter Magic Eden Make royalties optional for tradersAnd the Ethereum Platforms like X2Y2, LooksRare and blur You have Affiliate suit.

When a creator equity fee is not required, many traders choose not to pay it. The data from X2Y2 in late October, Posted by Alias ​​Proof Manager at Research Punk9059 showed that only 18% of traders bothered to pay any royalty. They said, “The free ride is very easy.”

Finzer tried to take a firm stance in his post, writing in partly bold text, “Many creators obviously want the ability to charge the series; and essentially, we think the choice should be theirs – it shouldn’t be a decision made for them by the markets.” “.

However, OpenSea’s public message does not resonate as clearly as this single comment, with many NFT creators sounding the alarm on social media about what they believe are misleading comments or unclear intentions about the market’s true path forward.

Blacklisted competitors

New OpenSea Enforcement System Provides Token for Ethereum NFT Creators to Enter in Newly Launched NFT smart contracts, which indicates a blacklist that prohibits NFTs from being traded on any royalty-free or listed markets. Smart contracts contain the code that supports independent and NFT projects decentralized applications (dabs).

It’s an approach similar to that taken recently by the famous generative artist Tyler Hobbs for the new QQL project. Hobbs and Collaborator with Dandelion West Implemented a similar blacklist Trading NFTs on platforms that do not respect the copyrights of the creators is prohibited. X2Y2, in particular, complained about being blacklisted, suggestion It violated the rights of the owners of NFT.

Fellow creators Hobbs and Wist widely supported their blacklist focused on the project. But in the case of OpenSea, the blacklist is Who is your direct competitor?: X2Y2, LooksRare, Blur, Sudo Swap. The company’s guidelines for creators to prevent those markets from competing appears to be for some NFT traders and creators, who appeared on Twitter.

“OpenSea loses market share to other markets that charge creator equity fees”, Bobby tweeted “Bobby Hundred” Kimco-founder of the fashion brand The Hundreds and the Adam Bomb Squad NFT project. “So, this solution is an adequate value proposition. It deters their competitors and ensures that artists on their platform get paid from secondary sales.”

Angrad “Harry” Thomas, Product Manager at ProofAnd the chirp This move may only increase the centralization of market power and dominance of the platform. “OpenSea returns completely off-chain,” she wrote. “They’re actually saying, ‘If you block our competitors with no equity in your contract, we’ll run the royalties on your behalf in our central system.'”

‘misleading’ messages

The bigger question, arguably, is what OpenSea’s plans mean to the creators of existing NFT projects. The company said it could make royalties optional for traders, but it could also charge them to “certain subsets of groups” or use other potential enforcement methods in the future. Content creators may need to change their projects and publish new contracts to take advantage of these methods.

All of this is unclear at the moment, and Finzer’s emphasis on honoring royalties isn’t much of a guarantee for some creators and merchants. After all, Solana’s top Magic Eden market supported royalties and She said she would continue to honor them-and then It just flipped over after a few days Where competitors captured market share. Some have claimed similar smoke and mirror tactics from OpenSea.

“[In my opinion]The OpenSea declaration is a clever rework to move existing collections to zero royalties” Betty Booksco-founder of the NFT project under a pseudonym Deadfellas. “This will disproportionately affect emerging artists and marginalized creators who will need to turn to VC funding. Statistically, more than 95% of VC funding goes to men.”

She remained unconvinced after speaking with executives at OpenSea today. “There appears to be no plan, and no clear answers given regarding existing collections and artist royalties,” I tweeted. “The communications have been misleading and the facts are not there.”

Artist Ryan “ThankYouX” Wilson I suggested That the announcement was “another slap from OpenSea to creators,” And that “They just want to confuse people and make them think they care about us and help us.” he added That the news was supposed to come out on Monday, and that OpenSea “scrambled it” to sidestep creators’ concerns about the initiative.

With a deadline at least one month later, OpenSea takes a more thoughtful and public approach to deciding royalties than many of its competitors (although Rarible has I’ve already taken a stand on royalties). Some artists are still skeptical of OpenSea’s goals, and are trying to rally people in the NFT space to help get the message across.

“Philosophically, giving up the rights to content creators would stop the Web3/NFTs job entirely,” Bobby hundreds of tweets. “Until now, the basic thesis of this amazing technology has been to ensure that artists get paid for their work.”

“So now it’s up to you, collectors, creators and critics, to be listened to and decide what’s going to happen,” he added. “As the largest market for NFT, if OpenSea rolls out the rights to content creators, it will have a huge impact on the entire ecosystem.”

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