Yuga Labs, creator of the popular Bored Ape Yacht Club (BAYC), has announced its decision to discontinue support for major NFT trading platform OpenSea's Seaport. The main reason for the stop is OpenSea's decision to eliminate the Operator Filter tool, which mandated the payment of creator royalties on secondary NFT sales. OpenSea introduces an optional royalty system, allowing creators to decide whether royalties are required. The change drew mixed reactions from the NFT community, with some members supporting a move to cheaper deals, while others, such as Yuga Labs, emphasized the importance of protecting creator royalties for fair artist compensation.
OpenSea operator filter supports and enforces royalties for NFT creators, defined and monitored through blockchain technology, smart contracts and metadata (metadata) Royalty, which provides automated tools to enhance creators' control and transparency over royalty payments. This reduces the risk of fraud and provides a steady income stream for artists, musicians, and other NFT creators. However, operator filters also face challenges, including the lack of standardized royalty practices, high transaction costs, and the complexity of NFT ownership verification. OpenSea plans to discontinue the operator filter. Because it is bypassed by various NFT platforms using Seaport Protocol such as Blur .
Mark Cuban, a prominent tech entrepreneur and investor at OpenSea, and others in the community expressed their concerns about the decision, citing the negative impact it could have on trust within the NFT industry.
OpenSea's shift sparked a broader debate in the NFT community about the pros and cons of enforcing creator royalties. Some platforms, like Blur, are taking advantage of this, offering free transactions and optional royalties, thereby attracting creators who prioritize lower fees. In response to the royalty changes, Yuga Labs plans to phase out OpenSea compatibility by February 2024, emphasizing their stance on the importance of creator royalties. Given the importance of Yuga Labs in the NFT world, their decision could reshape the dynamics of the NFT market.
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