OpenSea, the NFT trading marketplace, has recently announced its support for ERC721-C Ethereum NFT (non-fungible token) standard. This standard, developed by game company Limit Break, aims to enable creators to enforce royalties on secondary market transactions.
OpenSea was previously a proponent of NFT royalties and introduced the “Operator Filter” tool in 2022, which allowed creators to collect a certain percentage of royalties on each transaction. However, in order to maintain competitiveness, OpenSea had to reassess and adjust its royalty strategy, and in 2023, it announced the termination of the “mandatory” royalty payment system to creators.
Devin Finzer, the CEO of OpenSea, stated that the support for ERC721-C comes with the recent update of the Seaport 1.6 NFT marketplace protocol, which will allow creators to set up mechanisms to ensure royalty payments before NFT transactions take place. Finzer shared that OpenSea has been actively searching for new ways to support creator earnings, and ERC721-C is the latest solution.
What is ERC721-C?
ERC721-C is a standardized protocol that allows creators to enforce royalties on the NFTs they create. Its features include allowing creators to control the way and conditions in which their NFTs are transferred between different wallets and platforms, such as whether a certain fee needs to be paid for the transfer.
In addition, creators can set up a diverse royalty sharing system, distributing income to multiple stakeholders, including the creators themselves, communities, partners, etc., to achieve a fairer and more diverse revenue sharing mechanism.
OpenSea’s market share has been declining, with Tiexo data showing that its market share has been below 7% in the past 30 days. The current leader is Magic Eden, which recently launched a diamond reward program and is preparing for an upcoming NFT token airdrop event.
For a long time, OpenSea has resisted launching its own token, similar to Blur or LooksRare. However, these competitors have gradually grown and surpassed OpenSea after launching their own tokens or reward programs related to future token airdrops.
Regarding this, Finzer admitted in a recent interview with Decrypt that token rewards do excite people and can motivate users to use and support their preferred protocols. However, Finzer did not disclose whether OpenSea is considering issuing its own token. He stated, “I think we’re just seeing this trend, it’s becoming more and more common in the cryptocurrency space, and it’s really exciting. But we don’t have anything to share in that space.”
When asked about whether OpenSea plans to support the Bitcoin Ordinals inscription protocol, Finzer gave a similar response. He found the way Ordinals attracts Bitcoin enthusiasts interesting, but he also emphasized the developments in the Ethereum ecosystem, such as the development of Ethereum Layer 2 blockchain Base, which are worth paying attention to.
Source:
Decrypt
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Binance News