One of the reasons NFTs were so aggressively marketed to digital artists is that, thanks to smart contracts, the creator could earn royalties on any sale. Thus, an artist could have an incentive to create an NFT, since they would benefit from royalties and extra income if some of their works became commercially successful. This gave artists an incentive to monetize their art on NFT-compatible blockchains.
OpenSea, the largest NFT marketplace that still fully enforces copyright, announced today that it plans to end mandatory participation fees for artists . Starting in March 2024, these fees will be an optional percentage of the sale price that sellers can choose to pay to the original artist. If the seller does not wish to pay any money, that will be their choice.
NFTs no longer give artists as much money as they used to say
The NFT ecosystem has been in a race to the bottom when it comes to fees. As the market has shrunk, marketplaces have lowered their own trading fees and stopped enforcing copyright fees to attract sellers. Starting August 31, OpenSea will stop charging royalties on all new NFTs, and fees will continue to apply to certain existing collections until March 2024.
Many members of the NFT community are not enthusiastic about this move. Critics say it will hurt small artists and undermine creators' ability to control their relationship with the people who buy their work. Others, including OpenSea, are trying to frame it as a necessary change due to how the market is evolving.
OpenSea CEO Devin Finzer criticized the " ineffective and one-sided enforcement of the fees " and stated that creators will surely find other ways to monetize their work. However, this leaves artists in the same situation they were in before NFTs. Selling physical prints or accepting commissions will offer little difference, compounded by the stigma associated with NFTs in many communities not already familiar with them.
Source: The Verge
