OpenSea, the well-known NFT marketplace, recently announced that it will be discontinuing its on-chain royalty enforcement tool, Operator Filter, on August 31. This decision comes as a result of the tool’s lackluster support within the NFT ecosystem.
Introduced in November 2022, the main objective of Operator Filter was to allow curators to blocklist NFT marketplaces that did not enforce royalty payments, which was a significant problem in the industry. However, competitor marketplaces such as Blur, LooksRare, and Drew found ways to bypass the tool through the Seaport Protocol, rendering OpenSea’s royalty and blocklist requirements ineffective.
In addition to the technical challenges, creators also expressed concerns about the tool limiting their control over the platforms where they sell their collections, as it conflicted with their expectations of full ownership.
Despite the discontinuation of Operator Filter, OpenSea has outlined a new roadmap that focuses on empowering new use cases for both digital and physical collectibles. The marketplace aims to effectively promote all NFTs on its platform across primary and secondary platforms. Furthermore, OpenSea assures creators that creator fees will still be present, emphasizing that they are just one of the many revenue streams available to creators in the Web3 space.
In a tweet, OpenSea stated, “The Operator Filter depended on support from everyone in the ecosystem to be successful. And unfortunately that didn’t happen. Additionally, creator fees are just one of many revenue streams available to creators in Web3. We’ve dedicated a large part of our roadmap to power new…”
While the announcement has generated mixed reviews, it highlights the complexities of navigating the evolving landscape of NFTs. The decision to retire the OpenSea Royalty Tool and the marketplace’s subsequent steps demonstrate the ongoing challenge of striking the right balance between revenue generation, innovation, and creator empowerment, not only for OpenSea but for the entire NFT community.
It’s worth noting that although the Operator Filter will no longer obstruct marketplaces after August 31, any collections currently leveraging the tool, as well as those not held on Ethereum blockchains, will still have their fees enforced until February 29, 2024.
OpenSea’s decision has sparked a debate within the NFT community. Some members who rely on passive income from NFTs expressed their disapproval of the platform’s choice, and they proposed supporting NFT creators on platforms that require creator fees. On the other hand, there are those who believe that the discontinuation is a reasonable move, suggesting that the previous business model was excessively profit-oriented, focused on hype trading.
As the NFT ecosystem continues to grow, the challenges of revenue generation, innovation, and creator empowerment will persist. OpenSea’s roadmap represents its commitment to addressing these challenges and finding new ways to support creators and collectors in the dynamic world of NFTs.
In conclusion, the retirement of the Operator Filter tool by OpenSea reflects the evolving nature of the NFT landscape and the need for marketplace platforms to adapt to the changing needs and expectations of creators and collectors. While the tool did not achieve the desired level of support within the ecosystem, OpenSea remains dedicated to empowering new use cases and ensuring effective promotion and monetization of NFTs on its platform. The decision highlights the ongoing challenge of finding the right balance between revenue generation and creator empowerment in the NFT industry.
