OpenSea Ceases Royalty Tool—Yuga Labs Suspends NFT Trades

Share This Post

A tectonic shift has stirred the NFT realm as OpenSea reveals that it’s sunsetting its royalty enforcement tool, ‘Operator Filter‘, owing to “lackluster support” from the Web3 community.

This announcement has sparked Yuga Labs — the creative force behind the top-selling NFT collectibles Bored Ape Yacht Club (BAYC) and CryptoPunks — to suspend the trade capabilities of its most recent NFTs on the popular secondary marketplace starting February 2024.

Quick Takes: 

  • OpenSea reveals plans to cease enforcing royalty payments starting August 31, 2023.
  • Certain ongoing NFT projects using Operator Filter can continue using the tool until February 29, 2024.
  • Yuga Labs responds to OpenSea’s decision by suspending its newest NFTs on the marketplace.

Dilemmas Surrounding OpenSea’s Creator Compensation

OpenSea has announced that it will stop enforcing royalty payments on the marketplace starting August 31, 2023. However, current collections exploiting the tool and operating outside the Ethereum blockchain will continue collecting creator compensation until February 29, 2024.

OpenSea’s thought-out maneuver to make royalty payments optional – essentially turning them into gratuities – has garnered a mixture of reactions.

Some NFT creators believe this move is a strategic way to minimize costs and beckon more sellers. Conversely, others perceive it as a digression from the NFT world. For instance, the billionaire tech entrepreneur, Mark Cuban, believes OpenSea’s decision not to collect nor pay royalties “is a HUGE mistake”:

Royalties procure a sizable revenue stream for NFT projects. Yuga Labs amassed around $35 million in revenue through OpenSea trades by November 2022.

The marketplace’s decision to end its royalty enforcement tool will significantly impact the earnings of many NFT creators, who, like Yuga, depend on such commissions.

OpenSea Faces Backlash from Yuga Labs

Fighting back to OpenSea sunsetting its Operator Filter, Yuga Labs revealed that it’s suspending trading capabilities for its most recent NFT collections on the secondary marketplace.

Although Yuga’s established projects, like BAYC and CryptoPunks, will continue trading on OpenSea, the conflict between the two famed NFT-based projects concerning creator royalty fees showcases a turning point for the NFT ecosystem. 

Despite resale costs not being the sole pathway for accumulating revenue within NFT projects, royalties are a central generator for creators. OpenSea’s recent decision to bring its Operator Filter tool to a close presents the essential role secondary marketplaces play in ensuring such payments are upheld.

Subscribe to the NFT Lately newsletter to receive news covering the latest NFT-related drops, releases, reviews, and more.

spot_img

Related Posts

Void 2122 to Unlock a New Era of Combat Card Gaming with NFTs

The pioneering force in the Web3 landscape, Void 2122,...

Magic Eden Adopts Solana’s Compressed NFTs

Magin Eden, the distinguished NFT marketplace, recently announced its...

Friend.tech Returns With Surging NFT Trading Volumes

Friend.tech, the decentralized social media app, has shown an...

CoinMarketCap and HELLO Labs to Premiere TV Series, Killer Whales

An official trailer for the Web3 television series 'Killer...

Machi Proposes 11M $APE Sends NFTs to Museums Worldwide

An intriguing week-long vote surrounding OG NFTs kick-started today! Machi Big Brother,...

Related Posts

The History of Bitcoin NFTs – A Step-by-Step Timeline

With recent hype surrounding Casey Rodarmor's release of open-source...

The Ultimate Guide to NFT for Dummies [2022 Guide]

NFTs are collectible items that can represent digital content,...

Top 10 NFT Marketplaces to Look Out For and Why

How numerous NFT marketplaces make hunting for digital collectibles...

Bored Ape Yacht Club Review | 2023 Guide

An in-depth Bored Ape Yacht Club Review Guide. Everything you need to know about Bored Ape Yacht Club NFT Collection.

DeGods [ 2022 NFT Collection Review]

According to its description on OpenSea, DeGods is “a...

Yuga Labs Unveils Revolutionary HV-MTL NFT Collection

Yuga Labs launched the HV-MTL NFT collection of 30,000...