The founder and CEO of OpenSea, Devin Finzer, recently shared a tweet on the X platform, stating that the NFT marketplace OpenSea will be discontinuing its on-chain copyright enforcement tool called “Operator Filter”. This tool allowed creators to blacklist NFT marketplaces that didn’t enforce copyright. This change is set to take effect on August 31st. The Operator Filter feature was initially introduced in November 2022 as a simple piece of code to limit NFT volume only in marketplaces that imposed creator fees.
However, Finzer mentioned that this tool didn’t achieve the expected success, as it didn’t receive the necessary support from the NFT ecosystem. Marketplaces like Blur, Dew, and LookRare bypassed Operator Filter by integrating the Seaport Protocol, avoiding OpenSea’s blacklist and creator fees.
Finzer explained that the company also received feedback from creators who expressed concerns about this tool infringing on their control over where they sell their personal collections. He further noted that while creator fees are beneficial for certain business models, they are just one of many revenue sources for creators, and there are other use cases for NFT technology that need consideration.
Starting from August 31st, Operator Filter will no longer block any marketplaces. However, for collections using this tool and for existing collections on non-Ethereum blockchains, creator royalties will be applied until February 29th, 2024.
“Clearly, creator fees aren’t going away — just enforcement of them unilaterally and inefficiently.”
This decision appears to be a blow to NFT artists who were seeking passive income. Some members of the NFT community expressed disappointment with OpenSea’s decision, believing that collectors should support NFT creators on copyright-required platforms.
However, a Reddit representative artist believed this might be a step in the right direction, showing that the business model was benefiting excessively from aggressive transactions.
This move can be seen as having potential implications for NFT artists who are trying to earn passive income. Some members of the NFT community expressed their disappointment with OpenSea’s decision. They believe that collectors should support NFT creators on platforms that require copyright.
However, a Reddit representative artist believes this might be a prudent step, highlighting the business model’s excessive gains from aggressive transactions.