In this special episode, Peter explores leading NFT platform OpenSea's significant recent changes to its resale royalty policy that left many Creators feeling betrayed. Locked in ongoing resale royalties are perhaps THE single most important draw of NFTs to the creative community. Yet, OpenSea changed its rules of the game while the players were still on the field when it announced it was moving to optional creator earnings for collections without on-chain enforcement due to competitive pressures.
OpenSea's abrupt decision means that many Creators who had invested their time and trust in OpenSea now find themselves dependent on the good graces of resellers to pay them their promised resale royalties. And in a nascent Web3 world populated by significant numbers of profit-maximizing speculators, “good graces” can be hard to come by. OpenSea became the villain, as many Creators concluded that OpenSea had reneged on a fundamental tenet of their deal.
Peter spoke with top executives at OpenSea to get their response to Creator criticisms - and he considers those responses, as well as the broader implications of OpenSeas' decision to prioritize its profit-seeking users over the Creators who create the value in NFT marketplaces in the first place.
As always, reach out to peter at peter@creativemedia.biz - and check out his tech-forward media and entertainment legal services and business advisory firm Creative Media.
Reach out to host Peter Csathy at peter@creativemedia.biz and follow him on Twitter @pcsathy. Also, check out Peter's entertainment, media and tech-focused legal services and business advisory firm Creative Media. You can also sign up for his free newsletters on Substack - "Fearless Media" (all about the future of entertainment, media and tech) and "AI & NFT Legal Update & Litigation Scorecard" (all about the key legal and business issues and cases to track in the ever-evolving worlds of AI and Web3).
OpenSea Responds to the Creator Resale Royalty Uproar (aka NFTs Hit Rough Water for Creators on the OpenSea)