OpenSea, a prominent non-fungible token (NFT) marketplace, is discontinuing its on-chain royalty enforcement tool, called Operator Filter, which enabled creators to blacklist NFT marketplaces that did not enforce royalties. The removal of this tool is set to become effective on August 31, as stated by OpenSea's founder and CEO, Devin Finzer, in an announcement on August 17.
Introduced in November 2022, the Operator Filter allowed for a simple code snippet that restricted NFT sales to platforms that upheld creator fees. However, Finzer revealed that this tool did not gain the support required within the NFT ecosystem, as certain NFT marketplaces like Blur, Dew, and LooksRare bypassed it by integrating the Seaport protocol, thereby sidestepping OpenSea's blacklist and avoiding creator fees.
Finzer acknowledged the pushback from creators who perceived the tool as limiting their control over where their collectibles are sold. He mentioned that this restriction comes at the cost of fragmented ownership. While creator fees are just one revenue stream for creators, Finz er emphasized that OpenSea is looking to broaden its offerings and explore various NFT technology use cases.
Starting from August 31, the Operator Filter will cease to block any marketplaces. For collections utilizing the tool and existing collections on non-Ethereum blockchains, the creator's preferred fee will continue to be enforced until February 29, 2024. Despite discontinuation of the operator Filter, Finzer clarified that creator fees are not being eliminated entirely; rather, the unilateral enforcement aspect is being rethought.
The decision to discontinue the Operator Filter tool has garnered mixed reactions within the NFT community. Some members express disappointment, stating that collectors should back NFT creators on platforms that uphold royalties. Meanwhile, others view this move as potentially beneficial suggesting that certain business models could be excessively profit-oriented and reliant on hype deals.
