In a recent announcement, OpenSea, a prominent platform in the Ethereum ecosystem for NFTs, has integrated the ERC-721C token standard. This enhancement allows creators to establish and enforce their royalty fees easily. Starting from April 2nd, content creators using OpenSea now have the ability to manage their earnings with a simple click. Let's explore this advancement within the NFT platform.
Significant Progress by the OpenSea Team
The ERC-721C, pioneered by blockchain gaming company Limit Break in May of the previous year, standardizes token transfer rules like copyright universally. Its primary goal is to address the issue of wash trading in the NFT space.
Prior to this advancement, users could circumvent creator royalty fees in secondary markets by transferring NFTs via self-custody wallets or non-compliant NFT marketplaces. Limit Break expressed the following concerns in a Medium post:
“Ultimately, this led to the promotion of zero-fee, copyright-optional trade transactions through airdrop events, transforming tokens meant to be immutable into proxies for fungible tokens. Investors were incentivized to amass assets through wash trading activities between their own wallets, which is detrimental to the NFT sector.”
Notable Insights on the Topic
Developers at OpenSea clarified that ERC-721C compatibility was activated following Ethereum's March 13th Dencun upgrade. They mentioned:
“By configuring your content creator royalties as outlined above, sales will only be supported in other marketplaces endorsed by OpenSea and Limit Break's payment processor.”
With the implementation of the ERC-721C contract on OpenSea, creators can still personally list their crypto artworks on alternative platforms. However, OpenSea will match the lowest royalty fees set by the creator on those platforms.
This new feature also synchronizes with OpenSea's Seaport 1.6, enabling NFTs to be sold under specific conditions, like metadata modification based on sales volume. Although the exact percentage of NFT royalty fees varies at the creator's discretion, they typically range between 2.5% to 10% per sale. The top 10 NFT collections have collectively generated over $345 million in royalty revenue since their inception.
This original post was first published on COINTURK NEWS: OpenSea Adds Support for Creator Royalty-Setting ERC-721C Token Standard
