Hold your horses! Yuga Labs is pulling the plug on their OpenSea partnership, ditching support for their fancy “upgradable contracts” and any shiny new collections. Why? Well, it’s because OpenSea decided to kick its royalty protection tool, the Operator Filter, to the curb.
Launched in November 2022, this spiffy Operator Filter was the golden ticket for creators. It made sure that their NFTs only danced with marketplaces that gave creators their rightful cut, shunning those that didn’t – you know, like Blur.
But, plot twist! On a sunny August 17, OpenSea spilled the beans. They’re planning to bid adieu to this tool by the end of the month. Their reason? A cocktail of “not everyone’s on board,” some sneaky platforms dodging the tool, and some creators throwing shade.
The very next day, the big cheese of Yuga Labs, CEO Daniel Alegre, took to Twitter to let the cat out of the bag: they’ll be slowly but surely kissing OpenSea’s Seaport marketplace goodbye.
His words? “We’re starting to phase out our love affair with OpenSea’s Seaport. It’ll all be wrapped up by February 2024, marching to OpenSea’s own beat.”
Man, the BAYC fam was over the moon! Not just them; big shots like EllioTrades and Alex Becker tipped their hats in agreement.
And @dotta, the main man of the Forgotten Runes Wizards Cult NFT? He’s all in! Gushing about it, he said, “It’s high time creators join forces and head to marketplaces that value them. Yuga’s just lit the match!”
Not to be left behind, Luca Netz, the head honcho of Pudgy Penguins NFT, hinted he might dance to Yuga’s tune, dubbing it a “stellar move.”
Yuga is banning OpenSea in light of their choice to stop enforcing creator royalties— dotta (@dotta) August 18, 2023
You love to see it
Like I mentioned yesterday, OpenSea taught us how to filter exchanges with bad behavior by giving us the OperatorFilter registry
Those of us that implemented it, now plan on…
Adding more spice, when Coinbase NFT flaunted its loyalty to creator royalties on August 18, Netz playfully teased, “Wanna chat?”
Here’s the skinny: The whole royalties thing? It’s torn the NFT world in two. Back in 2021, it was all the rage to ensure creators got their slice of the pie. But when Blur, with its zero fees and optional royalties, rocked up in October 2022, it stirred the pot big time. Trading fees dipped, and marketplaces duked it out for users.
The NFT crowd? They’re now split down the middle. Some folks are living for the cheap and cheerful Blur model, suggesting new ways to pay creators. Others? They’re digging their heels in, shouting from the rooftops that royalties are the way to go.
In their current form, NFT royalties don’t make sense— scriblooooor (@scriblooooor) August 18, 2023
– owed for perpetuity
– owed even if sold at loss
-unenforceable without compromising ownership
Isn’t it better to make them optional and incentivise compliance, while working out other monetisation avenues for artists?