OpenSea to Phase Out Key NFT Feature Benefiting Artists

OpenSea, one of the world’s largest NFT marketplaces, is set to eliminate a standout feature that greatly benefited artists. Initially, during the NFT boom, one of the significant advantages of this technology was that artists received a small royalty commission for every secondary sale. However, this will no longer be the case on OpenSea.

Starting March 2024, artists who list their collections on OpenSea will no longer be able to demand any commission or royalties for each resale. Essentially, these fees will become tips. During the purchase process, sellers will have the option to give the original artist a small percentage of the sale price, but it will be entirely optional.

The decline in NFT trading has prompted major marketplaces to seek other incentives to attract buyers and sellers. Blur, the platform that managed to surpass OpenSea and establish itself as the current largest NFT marketplace, charges a small 0.5% fee on payments. This conflicted with the artist royalties, which could range from 2.5% to 10% in many instances.

For now, OpenSea will continue to apply creator fees to some existing collections. However, starting August 31, 2023, OpenSea will stop imposing these commissions on new NFTs listed for sale.

Upon the news going public, many users voiced their concerns on various platforms, stating that these new measures would primarily harm smaller artists. Due to these changes, they will no longer receive financial compensation from each resale of their works. On the other hand, OpenSea defends its decision, stating it’s the “natural evolution of the market.”