OpenSea, the main NFT marketplace, has stated that it will temporarily waive its 2.5% charge on sales and reduce creator royalty protections to weather the quickly shifting industry and competition from upstart rival Blur.
OpenSea tweeted that it will only enforce a 0.5% required creator royalty charge on NFT transactions for projects without an on-chain enforcement option; sellers can choose to pay a higher proportion. This eliminates OpenSea’s principal source of revenue. Often, the NFT inventor receives a royalty of between 5 and 10 percent of the sale price. The selling of tokens is just the beginning of how NFT projects make money.
OpenSea Has A New Marketing Strategy
After a successful week for Blur, a new marketplace that opened in October, OpenSea has decided to take action. On Tuesday, Blur distributed 1,000,000 BLUR tokens to NFT traders as part of an airdrop, and on Wednesday, the company urged the developers of NFT projects to prevent its users from engaging in trades. Being a marketplace, Blur does not impose any fees on sellers. It said late last year that it would only enforce royalties for new projects that used an on-chain enforcement tool, but would honor full royalty sets for any NFT projects produced before a specified date in January 2023.
If a marketplace, like Blur’s Bandcamp, does not strictly follow creator royalty rules, OpenSea will prohibit it. Yet, Blur seems to have discovered a way through that blocklist in January, which has only helped it lure more and more people away in subsequent weeks. The number of Blur users appears to be growing significantly, whereas the number of users is decreasing.