Backlash Over OpenSea’s Royalties Change Led by Mark Cuban, Yuga Labs

OpenSea Have Announced Changes To Their Royalty System

Major figures in the NFT space, including billionaire tech entrepreneur Mark Cuban and Bored Ape Yacht Club creator Yuga Labs, criticized NFT trading platform OpenSea after it announced its intention to stop enforcing creator royalties.

Cuban, who is also an OpenSea investor, expressed his disappointment on Twitter, emphasizing that not collecting and paying royalties on NFT sales is a significant mistake that erodes trust in the platform and harms the industry.

OpenSea’s decision to abandon mandatory creator royalties was perceived as a response to competition from other NFT marketplaces that have also reduced or eliminated such fees. The move, initially championed by OpenSea’s CEO Devin Finzer, was met with criticism from prominent NFT creators, including Yuga Labs, which plans to phase out its compatibility with OpenSea by February 2024.

While smaller platforms reaffirmed their commitment to creator royalties, many on Twitter worried that OpenSea’s decision would have negative implications across the industry, as it was the largest NFT trading platform still upholding the royalty policy.