OpenSea supports ERC721-C Ethereum NFT, what impact will it have on creators’ income?
The NFT trading market OpenSea recently announced its support for the ERC721-C Ethereum NFT (non-fungible token) standard, which was developed by the gaming company Limit Break to allow creators to impose mandatory charges on transactions in the secondary market. Royalties.
OpenSea used to be a defender of NFT royalties and launched the "Operator Filter" tool in 2022, allowing creators to collect a certain percentage of royalties from each transaction. However, in order to maintain competitiveness, OpenSea had to re-evaluate and adjust its royalty strategy. In 2023, OpenSea announced that it would terminate the "mandatory" royalty payment system to creators.
OpenSea CEO Devon. Devin Finzer said that ERC721-C support was launched with the recently updated Seaport1.6 NFT market protocol, which will allow creators to set up a mechanism to ensure the payment of royalties before NFT is traded. Fenze shared that OpenSea has been looking for new ways to support creators’ income, 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. The feature is that creators can control the methods and conditions for transferring their NFTs between different wallets and platforms, such as whether payment is required for transfers. Certain fees etc.
In addition, creators can set up a diverse royalty sharing system to allocate income to multiple stakeholders according to different situations and application scenarios, including the creator himself, the community, partners, etc., to achieve more fairness and diversity oriented revenue sharing mechanism.
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Token rewards are certainly exciting, but there are currently no plans!
In 2023, the NFT trading platform OpenSea announced that it would lay off 50% of its employees. Fenze said that it will comprehensively improve technology, reliability, speed, quality and user experience, and the organizational structure will also be simpler and flatter.
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This incident happened at a time when OpenSea's market share was declining. According to Tiexo data, the market share in the past 30 days was less than 7%. The current leader is Magic Eden, which recently launched a diamond rewards program and is preparing for an upcoming NFT token airdrop.
OpenSea has long resisted launching its own tokens like Blur or LooksRare, but these competitors have grown and surpassed OpenSea after they launched their own tokens or reward programs tied to future token airdrops.
OpenSea has long resisted launching its own token like Blur or LooksRare.
In response to this, Fenze was recently interviewed by foreign media "Decrypt". He admitted that token rewards are indeed exciting and can give users incentives to use and support their preferred protocols. However, Fenzer did not disclose whether OpenSea is considering issuing its own token.
"I think we're just seeing this trend, more and more prevalent in the cryptocurrency space, which is really exciting. But we don't have much information to share in this regard," Fenzer said.
Fenzer gave a similar answer when asked whether OpenSea planned to support the Bitcoin Ordinals inscription protocol. He was interested in the way Ordinals attracts Bitcoin enthusiasts, but he said that the Ethereum ecosystem is also worthwhile in the near future. Pay attention to, for example, the development of the second-layer blockchain Base of Ethereum.
Source: Decrypt, Binance News
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