OpenSea: New plans for NFT license fees

Well-known NFT marketplace OpenSea is planning new steps to enforce license fees. Although this initially appears to be in the interest of the artists, it was these very artists who expressed concern about the project.

In a tweet on November 6, OpenSea finally spoke out in the ongoing discussion about license fees for NFTs.

“By creators for creators” – NFT royalties

Arguably the best-known NFT marketplace, they took the first steps to launch a new, principled approach to royalty enforcement.

In a blog post, the company wrote:

Undoubtedly, many creators want to enforce resale taxes on their artwork via blockchain. In our opinion, it should be decided by the artists – not by the marketplaces.

Therefore, after November 8, OpenSea plans to launch a tool to collect on-chain license fees on newly created collections. This should enable writers to participate appropriately in the increase in value of their art.

In short: NFT Artists would thus be equipped with tools to gain more control over their business model.

Opensea is not currently planning changes to existing NFT collections. Additional community feedback should help develop a sustainable strategy if implementation is not planned until after December 8th.

However, Devin Finzer, CEO of Opensea, said in a blog post that this will not be easy. The one-month test phase will help the marketplace decide whether the fees for authors should be reduced in the long term, or whether an optional fee system would be the better solution.

What do Opensea users think?

This whole development got off to a rocky start: NFT marketplaces like Solana’s Magic Eden switched to an optional royalty model in October. With this model, buyers and sellers could choose what percentage of the sales proceeds should go back to the original artist.

However, shortly after the introduction of this model, the first artists expressed their concerns. So called one of the artists this is a sad day for Solana and even claimed said update would suffocate his project.

Similar comments were made about OpenSea’s ambiguous move. However, Finzer shed some light on the matter:

It became clear that the current mechanisms for enforcing royalties are not sustainable – neither for the enforcing marketplaces nor, more importantly, for the creators themselves.

A while ago, OpenSea dominated the NFT market, but recently it has seen a significant drop in revenue. As BeInCrypto reported last week, trading volume on the NFT marketplace fell down a staggering 94% since hitting a record high of $4.8 billion in January 2022.

Could the real motive behind OpenSea’s creator fee perhaps be to stabilize sales volume? Twitter user Bobby Hundreds, co-founder of the fashion label The Hundreds and the Adam Bomb Squad NFT project, clearly thinks so:

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