Blur recently announced its intentions to block OpenSea in the Royalties Battle. The upstart NFT marketplace has started to enforce complete creator royalties.
These royalties will only be awarded to creators who have blocked trading on OpenSea. After its successful launch in October 2022, Blur has been on a high road till now. The platform doesn’t enforce a creator fee, usually around 5%–10%.
Most NFT creators are used to paying the fee while requesting secondary sales. The current creator fee is only 0.5%, while traders have the option to pay even more. After the latest announcement, Blur is allowing any royalty fee, depending on the project creator.
As stated, this policy will only apply to creators blocking their OpenSea trading. According to Blur, the policy change has only been instated as a survival tactic. OpenSea has established its non-competitive practices, and Blur is trying to initiate a defensive strategy.
Creators whitelisting both Blur and OpenSea should be allowed to earn royalties everywhere. OpenSea has now made automatic royalties optional if it is detected trading on Blur. The Blur team would invite OpenSea to change the policy, allowing new collections to earn royalties on both platforms.
The practice of stopping creator royalties started the previous fall with Blur and other NFT marketplaces. OpenSea even considered the possibility of a suit but stopped after facing pushback from the community.
The circumstance prompted the 13.3 billion dollar corporation to launch a blocklist application. It enabled creators to prevent their NFTs from being traded in marketplaces that do not respect creator royalties. NFTs that opted for the software were granted full enforcement of custom creator royalties on OpenSea.
As expected, the move affected Blur’s value proposition significantly. Thus, the latest move by Blur was a long time coming. The NFT community keenly follows the situation, given its massive impact on the market.