OpenSea, a leading NFT platform within the Ethereum ecosystem, has recently expanded its support to include the ERC-721C token standard. This new development, announced on April 2nd, empowers content creators by giving them the ability to set and enforce royalty fees with ease. The move is aimed at enhancing creators’ control over their earnings and ensuring fair compensation for their work.
OpenSea Responds to Royalty Evasion
The newly supported ERC-721C standard, initially proposed by blockchain gaming company Limit Break in May, sets a standardized approach for token transfers, encompassing copyright conditions across various channels. Moreover, it addresses the issue of NFT wash trading—where creators’ royalty commissions were often sidestepped on secondary markets through direct wallet transfers or use of non-compliant NFT marketplaces.
Impact and Compatibility of the New Standard
OpenSea developers have rolled out compatibility for ERC-721C following Ethereum’s Dencun upgrade on March 13th. With its introduction, content creators can now ensure that their royalties are respected on sales occurring not only on OpenSea but also on other compliant marketplaces through Limit Break’s payment system. Additionally, despite creators having the freedom to list on multiple platforms, OpenSea pledges to uphold the minimum royalty fees specified by creators elsewhere.
Notes for the User
- Creators now have a streamlined method to set and protect their royalty fees on OpenSea.
- The ERC-721C standard counters the bypassing of royalties in secondary sales.
- OpenSea will align its royalty fees with the lowest rate set by the creator on other platforms.
The integration of this feature aligns with OpenSea’s Seaport 1.6 protocol, which allows NFTs to be sold only under specific conditions. Royalty fees, which are mainly at the discretion of the content creator, often range between 2.5% and 10% per sale. This update is projected to significantly bolster the revenue stream for creators, with the top 10 NFT collections already having accumulated over $345 million in royalties.