Liaoyuan parent company stops supporting Opensea mandatory royalties and will deactivate the OpenSea Seaport protocol

Recently, the Opensea platform announced the discontinuation of the mandatory royalty policy. This news has attracted widespread attention and discussion. PHP editor Xiaoxin learned from the latest statement from the parent company of Opensea that they decided to stop supporting the OpenSea Seaport protocol and stated that they would actively promote a more open and fair trading environment. This move is considered a response to user needs and a positive adjustment for the Opensea platform in market competition. Next, let’s learn more details.

The Operator Filter tool was released in November 2022 and is designed to help creators limit the secondary sale of NFTs to NFT markets with enforceable royalty mechanisms (usually charging 2.5% to 10% of the sales price) %) to filter out platforms like Blur that take optional or zero royalties.

However, although Opensea once competed for low-royalty platforms, it failed to achieve the participation of the entire ecosystem due to its dependence on mandatory royalty tools, and ultimately lost to the competition.

Boring Ape Parent Company: Stop Supporting OpenSea Seaport Protocol

The market leader’s total capitulation to the mandatory royalty policy immediately triggered a strong backlash from NFT creators. Among them, Yuga Labs, the publisher of the representative blue-chip NFT project Boring Ape (BAYC), took the lead in protesting the next day. In a statement released today, the company’s CEO Daniel Alegre said that Yuga Labs will phase out use of OpenSea’s Seaport protocol. This applies to all upgradeable contracts and any new series, and aims to fully implement the optional option in OpenSea in February next year. The royalty mechanism was completed before. Yuga believes that creator royalties must be protected to ensure creators are properly compensated.

According to The Verge, due to technical limitations, not all of Yuga’s NFT series will be blocked on OpenSea. Some old series, such as the well-known Bored Ape Yacht Club (BAYC) and the classic blue-chip project CryptoPunks acquired last year, may continue to be traded on Opensea, which may weaken the impact of low-to-low operations.

Yuga Labs spokesperson Emily Kitts revealed that they will take steps to prohibit the OpenSea market from trading their collections due to OpenSea’s move to phase out royalties. But she did not disclose details about which collections would be affected.

To date, sales of the Yuga-owned NFT collection have generated more than $9 billion worth of NFT transactions across the entire NFT market, according to CryptoSlam.

Mark Cuban speaks out to support creators

In addition to the positive response from the BAYC community, other NFT creators and project founders also expressed their appreciation for Yuga Labs’ move. Luca Netz, CEO of Pudgy Penguins, praised this as a great move and hinted that there may be a lower price action similar to Yuga Labs.

Another celebrity who has attracted attention in the community and denounced Opensea’s royalty policy is NBA Mavericks owner and cryptocurrency enthusiast Mark Cuban. He participated in Opensea’s 2,300 investment in 2021. USD 10,000 in Series A financing.

"Not collecting and paying royalties on NFT sales is a huge mistake. It reduces trust in the platform and hurts the entire industry. I am speaking out for Opensea investors."

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