The popular NFT platform OpenSea, operating within the Ethereum ecosystem, has recently expanded its support by incorporating the ERC-721C token standard. This recent change announced on April 2nd is designed to empower creators by allowing them to easily establish and enforce royalty fees. The primary goal is to give creators more control over their earnings and ensure they receive fair compensation for their work.
OpenSea Responds to Royalty Evasion
The newly integrated ERC-721C standard, originally proposed by Limit Break in May, offers a standardized approach for token transfers, including copyright conditions across different platforms. It also tackles the issue of royalty evasion in NFT trading, where creators' commissions were often bypassed on secondary markets through various means.
Impact and Compatibility of the New Standard
OpenSea developers have introduced compatibility for ERC-721C after Ethereum's Dencun upgrade on March 13th. This integration allows content creators to make sure their royalties are honored not just on OpenSea but also on other compliant platforms through Limit Break's payment system. While creators have the flexibility to list their work on multiple marketplaces, OpenSea promises to adhere to the minimum royalty fees set by creators elsewhere.
Notes for the User
- Creators now have an efficient way to establish and safeguard their royalty fees on OpenSea.
- The ERC-721C standard addresses royalty bypassing in secondary sales.
- OpenSea commits to matching the lowest royalty rate set by creators on other platforms.
The implementation of this feature is in line with OpenSea's Seaport 1.6 protocol, which regulates the sale of NFTs under specific conditions. Royalty fees typically range between 2.5% and 10% per sale, providing creators with a significant revenue boost. The top 10 NFT collections have already accumulated over $345 million in royalties, showcasing the potential impact of this update.
The post first appeared on BH NEWS: OpenSea Integrates New Standard to Boost Creator Royalties
