OpenSea Discontinues Royalty Tool Due to Limited Support

OpenSea Discontinues Royalty Tool Due to Limited Support

Popular NFT marketplace, OpenSea, announced its decision to discontinue its on-chain royalty enforcement mechanism, the Operator Filter, by August 31. The move comes in light of insufficient backing from the broader NFT community.

The Operator Filter was launched in November 2022 to allow users to sideline NFT platforms that neglected royalty payments. This was a significant concern in the industry. Nevertheless, other NFT platforms such as Blur, LooksRare, and Drew bypassed this mechanism using the Seaport Protocol. This rendered OpenSea’s initiative for royalty and blacklisting ineffective.

Further, several creators voiced worries that the tool compromised their control on platforms where they showcased and sold their creations. This went against the anticipated complete control they hoped for.

Looking Ahead: OpenSea’s Upcoming Strategy

While the Operator Filter faces its end, OpenSea is not stepping back from its commitment to the NFT community. The platform’s renewed plan emphasizes the enhancement of both digital and tangible collectibles. It pledges to boost all NFTs across main and secondary channels on its platform. Furthermore, OpenSea clarified that creator fees will remain in place.

The Industry’s Mixed Response

The decision to halt the Operator Filter comes with diverse reactions from the NFT community. Some individuals eyeing passive revenue streams expressed dissatisfaction with OpenSea’s move. They advocate backing creators on platforms that insist on creator fees. On the contrary, a segment believes that discontinuing the tool is a judicious move, pointing out concerns that the initial model was excessively centered on profit from trending trades.