- Last week, OpenSea sent shock waves throughout Web3 by tweeting that it was reconsidering whether to collect creator royalties for sales of NFTs. [click here]
- If you haven’t been following the recent debate over creator royalties (aka resale royalties), several upstart NFT marketplaces decided, during this crypto winter, to offer “zero royalties” policies, meaning they would ignore creators and the collection of royalties (typically, up to 10 percent of the price) for sales of their NFTs. By eliminating creator royalties, these marketplaces stood to benefit themselves by luring new users who could pocket the money (for the royalty) that would (and should) be going to creators for sales of their NFTs. And the “zero royalties” marketplaces themselves benefited from any platform fees they collected from those sales.
- From the start, OpenSea has been firmly supporting and collecting creator royalties, but the other marketplaces adopting “zero royalties” policies siphoned off many sales that ignored creator royalties on those sites. In other words, people could avoid royalties payments by buying or selling NFTs outside of OpenSea where the payments could be avoided, leaving creators out to dry.
- OpenSea’s tweet on Nov. 7 said it was reconsidering what to do and set Dec. 8, 2022 as a deadline for a decision. Well, thankfully, OpenSea came to its senses yesterday, November 9. OpenSea recommitted to collecting creator royalties for all NFTs.
- We all should applaud this decision! OpenSea is a leader, not follower.
- “Zero royalties” is an existential threat to Web3. All marketplaces should respect creators because, without them, Web3 is nothing.
Artists Unite to Protest Efforts to Eliminate Creator Royalties
Below I collect some of the impassioned pleas from artists! Let’s go, creators!
All Seeing Seneca, one of artists who created Bored Apes
Betty, co-creator of Deadfellaz
Snoop Dogg and FEWOCiOUS
iwwon, creator of CryptoMories