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OpenSea Drops Fees to 0%, Cuts Creator Royalty Protections Following Tension With Competitor Blur

Cointime Official

NFT marketplace OpenSea has announced several changes to adapt to the rapidly changing NFT ecosystem, including:

  • Drop OpenSea fee to 0% for a limited time
  • Introduce a minimum of 0.5% creator earnings model for all collections without on-chain enforcement
  • Update the operator filter to allow sales using NFT marketplaces with the same policies, including their competitor Blur

This announcement comes after its leading competitor Blur tells users to block OpenSea for full royaltites on Wednesday. According to Blur, users have to choose between Blur and OpenSea.

“Creators can’t earn royalties on Blur and OpenSea at the same time. Instead, they can only earn full royalties on OpenSea, or Blur, but not both together.” Blur stated in post.

OpenSea cited recent events including Blur’s decision to roll back creator earnings and the “false choice they’re forcing creators to make between liquidity on Blur or OpenSea.” 

OpenSea hopes to find the right balance of incentives and motivations for all ecosystem participants, including creators, collectors, and power buyers and sellers.

“This is the start of a new era for OpenSea,” the marketplace tweeted. “We’re excited to test this model and find the right balance of incentives and motivations for all ecosystem participants — creators, collectors, and power buyers and sellers.” 

Read full thread:

We’re making some big changes today:

1) OpenSea fee → 0% for a limited time

2) Moving to optional creator earnings (0.5% min) for all collections without on-chain enforcement (old & new)

3) Marketplaces with the same policies will not be blocked by the operator filter

2/ Context: There’s been a massive shift in the NFT ecosystem.

In October, we started to see meaningful volume and users move to NFT marketplaces that don’t fully enforce creator earnings.

Today, that shift has accelerated dramatically despite our best efforts.

3/ We’ve worked to defend creator earnings on ALL collections when others didn’t. And when we introduced the Operator Filter, it was our belief that on-chain enforcement was the best way for creators to secure their revenue stream from the ongoing resale of their work.101828944.8K

4/ We thought we could catalyze widespread enforcement of creator earnings, and we hoped others might come up with more resilient solutions – this hasn’t happened.

5/ Recent events – including Blur’s decision to roll back creator earnings (even on filtered collections) and the false choice they’re forcing creators to make between liquidity on Blur or OpenSea – prove that our attempts are not working. 

6/ Today, ~80% of total ecosystem volume does not pay full creator earnings, and the majority of volume (even accounting for inorganic activity) has moved to a zero-fee environment. Source: https://dune.com/hildobby/NFTs This requires a change.

7/ While we continue to uphold on-chain enforcement through the operator filter, we’re moving to a different fee structure that reflects the needs of today’s ecosystem.

8/ First and foremost – We’re dropping our OpenSea fee to 0% for a promotional period of time.

9/ Second – We’re moving to a minimum 0.5% creator earnings model, with the option for sellers to pay more. This applies to all collections that do not use on-chain enforcement (old and new).

10/ Third – We’re updating the operator filter to allow sales using NFT marketplaces with the same policies (including Blur, as they make good on their promise).

Now, creators won’t have to make the false choice between receiving earnings on OpenSea or Blur.

11/ This is the start of a new era for OpenSea. We’re excited to test this model and find the right balance of incentives and motivations for all ecosystem participants – creators, collectors, and power buyers and sellers.

12/ Stay tuned for more info, as we continue exploring ways to reward our most loyal users.

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