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ThecoinrepublicBlogYuga Labs Backs Up Opposing NFT Royalty...
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Yuga Labs Backs Up Opposing NFT Royalty Change from OpenSea 

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Yuga Labs, creator of the famous Bored Ape Yacht Club (BAYC) is set to finish up its support for OpenSea following the discontinuation of its on-chain tool Operator Filter. This tool was launched in November 2022. It restricts the secondary sales only to marketplaces that facilitate the creator royalties.

OpenSea revealed on August 17, that it will remove the Operation Filter from August 31, 2023. Many NFT community members are unmoved by the matter and the following day UYuga Labs CEO Daniel Alegre shared an announcement through X (formerly Twitter) that the firm will gradually end its use of the OpenSea marketplace. 

Other NFT Creators Also Opposing Royalty Enforcement

Yuga Labs believe in saving the creator royalties so that creators are properly compensated for their work. This post was met with a positive response from the members of the BAYC community and also from other NFT creators like Ellio Trades and Alex Becker.

Forgotten Runes Wizards Cult NFT project’s CEO and co-founder @dotta also showed support by tweeting that Yuga is banning OpenSea in light of their choice to stop enforcing creator royalties.

The CEO of Pudgy Penguins NFT Luca Netz also supported it by commenting as a great move. The idea of creator royalties and whether they should be supported or not has become a topic of discussion for the NFT community recently.

Mark Cuban also tweeted against the NFT trading platform, OpenSea. He said that not collecting and paying royalties on NFT sales is a huge mistake made by OpenSea. The investor added that this move has destroyed the trust in the platform.

In 2021, when NFT was booming, it was a common practice to imply creators’ royalty. Afterward, a marketplace like Blur emerged in 2022 which managed to secure good market share by offering zero trading fees and an optional creator royalty payment model.

To give competition, the trading fees and the royalty percentage started to sink. This has started creating differences in the NFT community. One is those who favor the cheaper NFT trading model platforms like Blur and argue for creator compensation. The others are those who favor the need to pay royalties.

Yuga Labs announced their shutting down from upgradable contracts and any new collections to be completed in February 2024 in combination with the OpenSeas approach. The CEO Daniel Alegre also tweeted that Yuga believes in safeguarding creator royalties. Hence, creators are properly reimbursed for their work.

Summary

After announcements from OpenSea that it plans to stop enforcing the compulsory creator royalty, it has been discomforted by many creators from the NFT community. Yuga Labs have taken a major step showing its discomfort with this decision. The creator of BAYC has decided to end its compatibility with OpenSea till 2024 and has already started the process.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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