{"id":32549,"date":"2023-08-17T22:15:16","date_gmt":"2023-08-17T22:15:16","guid":{"rendered":"https:\/\/entertainment.runfyers.com\/index.php\/2023\/08\/17\/a-key-feature-of-nfts-has-completely-broken\/"},"modified":"2023-08-17T22:15:16","modified_gmt":"2023-08-17T22:15:16","slug":"a-key-feature-of-nfts-has-completely-broken","status":"publish","type":"post","link":"https:\/\/entertainment.runfyers.com\/index.php\/2023\/08\/17\/a-key-feature-of-nfts-has-completely-broken\/","title":{"rendered":"A key feature of NFTs has completely broken"},"content":{"rendered":"


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One of the big promises of NFTs<\/a> was that the artist who originally made them could get a cut every time their piece was resold. Unfortunately, that\u2019s not the case anymore.<\/p>\n<\/div>\n

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OpenSea, the biggest NFT marketplace still fully enforcing royalty fees, said today<\/a> that it plans to stop the mandatory collection of resale fees for artists. Starting March 2024, those fees will essentially be tips \u2014\u00a0an optional percentage of a sale price that sellers can choose to give the original artist. If the seller doesn\u2019t want to hand over any money, that\u2019ll be their choice.<\/p>\n<\/div>\n

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The NFT ecosystem has been on a race to the bottom when it comes to fees. As the market for NFTs collapsed, marketplaces have lowered their own trading fees and stopped enforcing royalty fees in order to attract sellers. Blur, which has overtaken OpenSea as the biggest NFT marketplace by trading volume, only enforces a 0.5 percent fee on most collections, whereas creators typically set their fees at 5 to 10 percent.<\/p>\n<\/div>\n

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OpenSea will stop enforcing royalty fees on all new NFTs starting August 31s. The marketplace will continue enforcing the fees on certain existing collections until March 2024, at which point they\u2019ll become optional on all sales.<\/p>\n<\/div>\n

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Judging by the responses to OpenSea\u2019s X post<\/a> about the changes, many in the NFT community are not thrilled by this. Critics say it will hurt small artists and undermines creators\u2019 ability to control their relationship with the people who buy their work.<\/p>\n<\/div>\n

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OpenSea\u2019s changes are \u201cfundamentally wrong and hurts the entire NFT space,\u201d Wildcake, the founder of the Posers NFT collection, tells The Verge <\/em>in a DM. Wildcake said the change is particularly disruptive to creators who built a business plan around enforced royalties, like the Posers team had with a blockchain game they\u2019ve been developing. \u201cOpenSea decided to turn off this last opportunity to earn profit. As a result, we have been working for five months for free.\u201d<\/p>\n<\/div>\n

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Others, including OpenSea, are trying to frame it as a necessarily, positive change as the marketplace evolves. OpenSea CEO Devin Finzer criticized the fees\u2019 \u201cineffective, unilateral enforcement\u201d and said that creators will find other ways to monetize their work.<\/p>\n<\/div>\n

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\u201cOur role in this ecosystem is to empower innovation beyond a single use case or business model,\u201d he writes in the blog post announcing that OpenSea will no longer support the ecosystem\u2019s primary business model.<\/p>\n<\/div>\n

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Update August 17th, 6:35PM ET: <\/strong>Incorporated comments from Wildcake.<\/em><\/p>\n<\/div>\n