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Non-fungible token (NFT) aggregator Rarible has plans to cease aggregating orders from marketplaces OpenSea, LooksRare, and X2Y2. The decision comes after OpenSea decided to shift to an optional royalty model.
On Thursday, August 17, OpenSea disclosed that royalties – pay cuts from secondary sales – will become optional for new NFT collections after August 31, 2023. Meanwhile, royalty fees for NFT collections that currently utilize the Operator Filter – a feature that enforces creator royalties – will become optional after February 29, 2024.
Although the optional royalty model has always been a source of debate in the NFT community, many marketplaces embrace it – with X2Y2 and LooksRare introducing zero royalty fees for artists as far back as 2022.
Rarible Throws Support Behind NFT Creators And Artists
On Tuesday, August 22, Rarible announced – via a post on X (formerly Twitter) that it will no longer aggregate orders from OpenSea, LooksRare, and X2Y2 by September 30. According to the NFT aggregator, this decision was taken because of its “unwavering support for NFT creators and artists.”
Alex Salnikov, co-founder of Rarible, said in a statement:
The principle of royalties is at the heart of decentralization – a continual affirmation of a creator’s value in every transaction. We stand in solidarity with creators and artists. That’s why we will no longer support marketplaces that neglect royalties.
The Rarible co-founder stated that by making royalties optional, the value and compensation for creativity are also being stripped off. “Decentralization offers the opportunity to dispel the stigma of the “starving artist,” and enable the continued growth of projects through true ownership and ongoing earnings,” he noted.
Salniko urged the NFT community to become more active in defining the future of Web3.
Pressure Mounts On OpenSea
This news is another potential setback for OpenSea, especially as Rarible is not the first NFT entity aiming to cut ties with the one-time largest digital asset marketplace due to its proposed zero-royalty shift.
On Friday, August 18, Yuga Labs – creators of the popular Bored Ape Yacht Club collection – declared that it had begun the process of sunsetting support for OpenSea’s SeaPort for all “upgradable contracts and new collections” before February 2024.
Despite the seemingly waning interest in the collection, Bored Ape Yacht Club is still one of the most significant contributors to the total trading activity on OpenSea. It ranks as the top collection on the marketplace, with a daily trading volume of 1,440 ETH (approximately $2.37 million).
Hence, losing this blue-chip collection – and other Yuga Labs’ creations – will likely affect OpenSea’s performance and position in the market.
According to a new Messari report, Blur remains the dominant marketplace, accounting for about 60% of the total NFT trading volume.
Crypto Total Market Cap at $1.029 trillion | Source: daily TOTAL chart on TradingView
