Why NFT Creators Are Up in Arms Over Royalties – and Rightly So | PRO Insight

OpenSea has defended a change it made to payments, saying competition forced its hand

For weeks, leading NFT marketplace OpenSea has been grappling with backlash from creators after it made significant changes to its resale royalty policy that rocked the creative community and left many in it feeling betrayed.

The reaction followed OpenSea’s Feb. 17 announcement that it was making enforcement of resale royalties optional on a swath of NFT collections — more like a tip if buyers felt like paying for it. Imagine essentially being promised, and relying upon, an ongoing 10% royalty on every resale of your creative work, but then having that pulled away. Many creators felt that OpenSea had reneged on a fundamental tenet of their deal, and the blowback was swift. After all, the blockchain’s promise of continuing royalties represents the single most critical benefit of NFTs to creators. 

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Peter Csathy

Peter Csathy is a WrapPRO contributor writing about the intersection between tech and entertainment/media. He's chairman of Creative Media (https://creativemedia.biz/), a boutique media, entertainment and tech business advisory and legal services firm. His monthly “Fearless Media” newsletter (https://fearlessmedia.substack.com/) covers the future of entertainment, media and tech; and his weekly “AI & NFT Legal Update” newsletter (https://ainftlegalupdate.substack.com/) covers the AI and Web3/NFT ecosystems. You can also listen to his “Fearless Media” podcast (https://fearlessmediapodcast.buzzsprout.com/) and follow him on Twitter @pcsathy.