The creator of the OpenSea NFT marketplace, Devin Finzer, has announced that it will deactivate its royalty enforcement tool.

Beginning on August 31, OpenSea will no longer support the Operator Filter application. This modification will eliminate marketplace restrictions moving forward.

ALSO READ:Half-Life Of Bitcoin, A Priori Is Not A Criteria: Coinbase | CoinDesk JAPAN | CoinDesk JAPAN

OpenSea is expediting the process by which individuals can determine whether a transaction includes a creator's fee in an effort to increase transparency. However, until February 29, 2024, creators who have already implemented the Operator Filter or are using specific digital collections will continue to apply their desired fees to sales.

According to an announcement made by Finzer on August 17, forthcoming platform modifications aim to empower creators and increase autonomy within the decentralized web3 ecosystem.

The company anticipates that the modifications will provide creators with greater control over OpenSea's fee programs.

Finzer also explained that OpenSea will provide vendors with greater flexibility. Beginning on August 31, it will be simpler for sellers to select the creator's fee or choose their preferred mode of fee payment.

This modification seeks to produce a more seamless experience for platform sellers.

Additionally, Finzer stated that OpenSea will not eliminate creator fees. Instead, the platform reassesses its fee structure to ensure a pragmatic approach. This decision is a response to the need for enhanced results, as the previous approach was not producing desirable outcomes.

ALSO READ:OKX, a leading cryptocurrency exchange, will expand operations in Dubai, UAE.

The Operator Filter was designed to empower creators and restrict the sale of their collections to web3 marketplaces that enforced creator fees on secondary transactions. However, the anticipated widespread adoption and ecosystem-wide support for web3 did not materialize.

Finzer also explained why the previous system, specifically the Operator Filter, failed to achieve its intended results. The effectiveness of the Operator Filter was contingent on the participation and support of all marketplaces, but not all marketplaces agreed to comply with its requirements.

Some marketplaces even discovered ways to circumvent the filter, posing difficulties for creators and purchasers. In addition, he described how the web3 ecosystem provides creators with multiple revenue-generating opportunities beyond reselling their digital assets.

Decreasing trade volume

In 2021, the market for non-fungible tokens encountered a rapid increase in prominence and trading volume involving billions of dollars. Nonetheless, the market dynamics shifted in 2022 as a result of a number of factors.

The failure of Do Kwon's Terra ecosystem and its algorithmic stablecoin initiative was caused by a significant factor. The defunct stablecoin TerraUSD sought to maintain parity with the US currency.

TerraUSD lost its linkage to the US dollar in May 2022, culminating in a panic-driven sell-off. This abrupt decline in value swept billions of dollars off the global crypto markets, including the digital collectibles market.

ALSO READ:France investigates Binance for alleged money laundering

OpenSea, the largest NFT marketplace at the time, sustained a significant security compromise in June 2022, resulting in the theft of digital collectibles valued over $300 million.

Among the stolen NFTs were CryptoPunks, Bored Ape Yacht Club NFTs, and other notable collections. As anticipated, the theft rattled investor confidence in the NFT market, resulting in a significant decrease in trading volumes.

According to Defi Llama, at the time of writing, Blur is the largest NFT marketplace in terms of total value secured ($78.46 million).