OpenSea announced that creators using its marketplace have earned over $1 billion in royalties. This announcement comes shortly after the publication of the Galaxy Digital report about the royalties received by the creators of the project.
As of November 23, 2022, creators using OpenSea have earned over $1 billion in royalties since the start of 2022. To avoid confusion, we’ll talk about NFT project creators here, not just artists .
1 billion dollars for creators of NFT projects by 2022
When a sale takes place in OpenSeaseveral fees apply to the buyer:
- The transaction fee of the used blockchain (variable);
- OpenSea Fee (2.5%);
- royalties (variable).
OpenSea’s fees and royalties are based on total sales value only.
From January 1 to November 23, 2022, OpenSea stated that the sales that took place on their market brought in $1.1 billion in royalties to the creators of the project. And to determine in its press release that the “top 10” collections that recovered the most royalties represent only 20% of the total number. This amount echoes Galaxy Digital’s report, which estimates royalties in the NFT world at $1.8 billion.
By comparing the amounts paid by the NFT platform to the payment of TikTok, Meta or Patreon to their artists, OpenSea wants to send the message that the promises of Web3 are fulfilled. Without a trusted intermediary, creators receive royalties from secondary sales of their wallet.
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An electric context around royalties
Managing royalties through marketplaces has been driving the NFT community ever since SudoSwap entered the market. Each platform can handle fees in their own way and SudoSwap offers extremely low fees regardless of collecting royalties.
To face this situation, many types of compromises are sought to “force royalties” but technical solutions (such as EIP-2981) are based on a voluntary basis. In addition, while OpenSea is working to integrate this standard, which allows royalties to be redistributed directly to artists without going through artistic markets, other competitive markets appear to offer the their own royalties model.
Royalties are one of the main promises of NFTs. However, reflection and the development of solutions around this topic in the community are still embryonic.
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