Ethereum ecosystem’s major NFT platform OpenSea has added support for the ERC-721C token standard, which allows content creators to set and implement their royalty fees. According to the announcement made on April 2nd, content creators on OpenSea can now regulate their earnings with just one click. Let’s examine this development on the NFT platform together.
Significant Step from the OpenSea Team
The ERC-721C, tackled by blockchain gaming company Limit Break last May, standardized token transfer conditions such as copyright across all channels and aims to solve the NFT wash trading issue.
Before this step, users could easily bypass creator royalty commissions in secondary markets like OpenSea and Blur by transferring NFTs through self-custody wallets or even other NFT marketplaces that did not comply with creators’ copyright requirements. Limit Break mentioned the following in a Medium post:
“In the long run, this allowed for zero-fee, copyright-optional trade transactions to be incentivized with airdrop events and effectively turned tokens intended to be immutable into proxies for fungible tokens. Investors were encouraged to accumulate assets through wash trading transactions between their own wallets, which is bad for the NFT industry.”
Noteworthy Comments on the Matter
OpenSea developers stated that compatibility for ERC-721C was enabled only with the Ethereum network’s March 13th Dencun upgrade. The platform stated the following:
“If you apply your content creator earnings according to the steps above, sales will only be supported in other markets supported by OpenSea and LimitBreak’s payment processor.”
After the implementation of the ERC-721C contract on OpenSea, content creators can continue to manually list their crypto works on other marketplaces, but OpenSea will match the lowest royalty fees set by the content creator on other platforms.
This feature is also compatible with OpenSea’s Seaport 1.6, which programs NFTs to be sold only under certain conditions, such as metadata that changes in response to sales volume. Although largely at the discretion of the creator, NFT royalty fees typically range from 2.5% to 10% per sale. The top 10 NFT collections have managed to earn over $345 million in royalty revenue since their inception.
