OpenSea, a prominent marketplace for NFTs, has recently announced some major changes in response to a significant shift in the NFT ecosystem. The platform has decided to temporarily shift to a 0% royalty fee model in an attempt to find a balance between incentives for all ecosystem participants, including creators, collectors, and power buyers and sellers.
8/ First and foremost – We’re dropping our OpenSea fee to 0% for a promotional period of time.
— OpenSea (@opensea) February 17, 2023
Although some artists and creators have argued that a 0% fee approach is detrimental to the ecosystem, OpenSea has been forced to make this move due to the fact that a majority of NFT volume has moved to zero-fee platforms or to platforms that provide incentivized trading like Blur.
To address concerns, OpenSea has also implemented a minimum 0.5% creator earnings model for all collections that do not use on-chain enforcement. Additionally, the platform has updated its operator filter to allow sales using NFT marketplaces with the same policies.
While some users have expressed confusion or concern about the on-chain enforcement aspects, OpenSea has clarified that it will continue to respect any method of on-chain enforcement. However, there are still some creators who are unsatisfied with the changes, while others are indifferent or supportive.
It remains to be seen what the long-term effects of this temporary change will be. Nonetheless, there are tools that can be used to maintain enforcement, and emerging marketplace aggregators allow creators to create their own marketplaces. Despite this, there is still uncertainty about the future of NFT marketplaces, and OpenSea’s recent changes have sparked a range of reactions from users.