NFT marketplace OpenSea is turning off its tool that allowed creators to enforce royalties across other NFT marketplaces. Some NFT pundits are worried it could cut their revenues.
Nonfungible token marketplace OpenSea is sunsetting its on-chain royalty enforcement tool — Operator Filter — that allows creators to blacklist NFT marketplaces that don’t enforce royalties.to an Aug. 17 statement by OpenSea founder and CEO Devin Finzer.2022 and was described as a “simple code snippet” that could restrict NFT sales to only marketplaces that enforced creator fees.
Finzer claimed that NFT marketplaces such as Blur, Dew and LooksRare had circumvented the Operator Filter by integrating the Seaport Protocol to bypass OpenSea’s blacklist and therefore avoid creator fees. “We have heard from some creators that the Operator Filter limits their sense of control over where their collections are sold, and at the same time may collide with a collector’s expectation of full ownership.”Finally, Finzer explained that while creator fees are useful for certain business models, its only one of many revenue streams available to creators and there are a number of other use cases of NFT technology that need to be considered.
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