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TEXXR

Chronicles

The story behind the story

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OpenSea plans to make creator fees optional for new collections from August 31 and enforce creators' preferred fees on all secondary sales through February 2024

MK Manoylov / The Block :

The Block MK Manoylov

Context & Ripple Effects

OpenSea had previously said it would continue enforcing royalties after other NFT marketplaces changed their structures. The later shift came after Blur’s no-fee model pressured OpenSea to cut its own marketplace fees, making creator-fee enforcement a competitive variable rather than a settled platform rule.

The policy creates a split regime: new collections enter under optional creator fees, while existing secondary sales retain enforcement only through February 2024. That transition matters because royalties had been a meaningful source of creator compensation across collections, not only the largest ones.

First-order effects

  • Creators launching new collections on OpenSea lose a guaranteed platform-enforced payment on secondary sales, while traders gain more discretion over whether to pay those fees.
  • Owners and traders of existing collections retain OpenSea enforcement of creator-set fees through February 2024, giving those collections a temporary continuity period.

Second-order effects

  • Marketplaces that had already altered royalty policies gain validation for competing on lower all-in trading costs; OpenSea can reduce friction for fee-sensitive trading while preserving a temporary commitment to existing collections.
  • Creators may weigh marketplaces and collection designs more heavily around royalty enforcement, a choice sharpened by the earlier industry-wide moves away from mandatory royalties.

Third-order effects

  • If optional royalties become the durable norm, NFT marketplaces may compete less on enforcing creator economics and more on liquidity, fees, and trading experience, shifting more of creators’ revenue models away from secondary-sale payments.
  • The February 2024 cutoff illustrates that royalty policy can become transitional and collection-specific rather than a marketplace-wide standard, though the corpus does not establish what policy will follow.

The trend: NFT marketplaces are moving from uniform royalty enforcement toward fee structures shaped by liquidity competition and trader price sensitivity.

Discussion

  • @mcuban Mark Cuban on x
    Not collecting and paying royalties on NFT sales is a HUGE mistake by @opensea. It diminished trust in the platform and hurts the industry. And I say this as an @opensea investor @DevinFinzer
  • @yugalabs @yugalabs on x
    On @opensea's decision to sunset their Operator Filter. [image]
  • @3orovik @3orovik on x
    Opensea is removing ALL creator royalties This is a massive mistake. They still have a 2.5% fee for themselves which means traders will still continue to use blur but now artists who relied on opensea to sell their art are being even further screwed Big L [image]
  • @betty_nft Betty on x
    So are we boycotting @opensea then? If it doesn't align with the incentives of creators, creators should move their business to places that do.
  • @3antar_eth @3antar_eth on x
    Hey @opensea! Are you removing your OpenSea fee or are you only focused on bending over the creators who supported you? Are you still enforcing the 2.5%? Why would anyone continue to support you when they can pivot to Blur now? You're removing the thing that made you unique.
  • @adion_17 @adion_17 on x
    Can we keep the Creator Feed as mandatory but change the OpenSea Fee to optional instead?
  • @heyjeremyhorn Jeremy Horn on x
    GEN1 NFTs ARE DEAD💀 OpenSea optional fees are THE final capitulation. Expect an exodus of collection makers as their only revenue option now diluting their collections or rugs. The future is Gen2 gaming NFTs + enforced ecosystems! The present is dark, future is bright! [image]
  • @icollectdigital @icollectdigital on x
    Got an interesting email from @opensea. If I understand correctly you can add a creator fee. I know @ENSMaxisNFT is against it, but what if they added a fee and used those funds to sweep the #ENSMaxisNFT floor as needed. #ENSMaxis [image]
  • @kineticweb3 @kineticweb3 on x
    GM ☀️ Yesterday, OpenSea introduced optional royalties on all collections Meaning that less and less projects will survive Bullish on those who operate like real businesses Credits to @FeralBorne_Art for capturing my research on project that is here to stay 👇 [image]
  • @bitgod21 @bitgod21 on x
    OpenSea deleting royalties. Blur farming destroying floors. Platforms pumping out nonsense. Someone needs to stick up for artists.
  • @nftpowerranking @nftpowerranking on x
    Opensea: “To be clear, creator fees aren't going away - the ineffective, unilateral enforcement of them is.” Also Opensea: “To be clear, our 2.5% marketplace fee isn't going away - it will be effectively, and unilaterally enforced so we can keep making that sweet sweet cash.” [im…
  • @goblinmayn @goblinmayn on x
    Hey @opensea we should be able change that 2.5% fee you charge and make it zero. How come I don't get this option? [image]