• Fri. May 24th, 2024

OpenSea Re-strategize, Ends Binance Chain Support, Moves NFT Creator’s Royalties

Maria Bartiromo

ByMaria Bartiromo

Aug 19, 2023

OpenSea NFT markets have announced the discontinuation of its BNB chain support and a major change in its approach to NFT creator royalties in a decision that has attracted the attention of the blockchain and NFT communities. The report says that users and creators alike are curious about and concerned about this move.

After much speculation and expectation, OpenSea has decided to stop supporting the BNB chain. The company had initially stated that it would incorporate Tezos-based NFTs onto its platform in February 2021. However, users are still expectant because this integration has yet to happen. Supporters of Tezos who had been looking forward to the platform’s extension onto this blockchain are displeased with the delay.

Despite the ongoing disappointment with the Tezos integration, OpenSea keeps growing the range of Layer 2 (L2) networks that it supports. The market already allows the trading of NFTs created on Avalanche, Klaytn, and Solana, in addition to supporting networks like Arbitrum, Optimism, and Polygon. OpenSea’s strategy to meet the expanding diversity of blockchain ecosystems includes this multichain method.

NFT creators and traders on the platform are now apprehensive due to a modification that OpenSea disclosed on Thursday, August 17. The revised terms of usage suggest that NFT creators may receive less money in royalties. Before now, it was designed so that the creator of an NFT received a royalty fee out of the selling earnings.

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OpenSea New Policy Explained, NFT Community Reacts To Decision

Due to this move, NFT traders on OpenSea will no longer be required to pay these artists royalties. The prohibition against moving NFTs to other marketplaces will also be repealed, which can impact the exclusivity of some NFT collections.

Following this disclosure, there was an immediate backlash, with numerous individuals venting their displeasure on social media sites, particularly on X (previously Twitter). Many users mentioned that OpenSea’s support for Tezos has yet to materialize, raising doubts about its capacity to keep its commitments.

Reactions to these developments can be seen in notable NFT initiatives. It was also gathered that Bored Ape Yacht Club (BAYC)’s founder, Yuga Labs has declared that support for the Seaport marketplace contract with OpenSea will soon end. This choice might cause some NFT trading activity to move from OpenSea’s platform to other online markets.

Yuga Labs Emerge As The Biggest Opposition, As Users Raise Issues

The maker of the popular CryptoPunks NFT collection, Yuga Labs, opposes several NFT marketplaces. Due to what Yuga Labs claims is their improper use of royalty payments for majority of their more recent NFT collections, platforms like LooksRare, Blur, SudoSwap, and NFTX have been placed on a blocklist.

This also complicates the existing discussion about the appropriate payment of NFT inventors. The decisions made by OpenSea will substantially impact creators, traders, and the larger blockchain community as the NFT ecosystem develops. According to Devin Finzer, the OpenSea CEO, the entire NFT ecosystem must participate before the creator’s fee model could work.

Questions have been raised concerning OpenSea’s direction and dedication to its users in light of the suspension of support for the BNB chain, the postponed Tezos integration, and the change in NFT creator royalties. The report also states that OpenSea has blocked transfers that do not conform to continue paying creator fees per sale.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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