OpenSea, the leading NFT marketplace, has announced that it will temporarily eliminate its marketplace fee and allow optional creator royalties starting at 0.5%. The policy shift is a response to competition with popular zero-fee marketplace Blur, and OpenSea has also adjusted its blocklist of marketplaces that don’t honor full royalty payments to creators. The tension between Blur and OpenSea has intensified since the release of Blur’s native token on Tuesday, resulting in Blur’s trading volume surpassing OpenSea for the first time since its launch in October.
New Era for OpenSea
The NFT marketplace announced on Twitter that this change is “the start of a new era for OpenSea” and that they are excited to find the right balance of incentives and motivations for all ecosystem participants, including creators, collectors, power buyers, and sellers. OpenSea’s previous hardline stance on creator royalties has shifted, and the marketplace will now default all collections without on-chain royalty enforcement to optional creator royalties.
Creator Royalties and Market Competition
OpenSea launched a royalty enforcement tool in November 2021 that allows new collections listed on the site to delegate royalties on-chain. This tool also blocks these collections from being resold on marketplaces that don’t enforce royalties, such as X2Y2 and Blur. However, Blur reportedly found a loophole in this tool in January that allowed collections to uphold their percentages on Blur. On Wednesday, Blur published a blog post outlining the differences in royalty payment options between its platform and OpenSea, encouraging its users to blocklist OpenSea in order for creators to collect full royalties on its platform.
The Zero-Fee Marketplace Battle
OpenSea’s decision to eliminate marketplace fees comes amid increased competition in the NFT marketplace space. Zero-fee marketplace Blur has seen a surge in popularity since its launch, with the native token release attracting attention and causing trading volume to surpass OpenSea. Other competitors, such as Rarible and SuperRare, have also entered the fray, offering different fee structures and incentives for creators and buyers.
What This Means for the NFT Market
The NFT market has exploded in popularity over the past year, with high-profile sales and a growing interest from collectors, creators, and investors. The battle for market share between different NFT marketplaces has intensified, with the zero-fee model gaining popularity as creators and buyers seek out platforms that offer better incentives and lower fees. OpenSea’s announcement of a temporary zero-fee model and optional creator royalties is a significant shift in its policy and may have repercussions for other marketplaces in the space.
OpenSea’s decision to temporarily eliminate marketplace fees and offer optional creator royalties is a response to increased competition from zero-fee marketplace Blur and other NFT marketplaces. The NFT market has seen explosive growth over the past year, and the battle for market share between different platforms has intensified. OpenSea’s policy shift is a significant development that may have implications for other marketplaces and could lead to further changes in the NFT marketplace landscape.