NFT Creators On Opensea Will Earn $1 Billion In Royalties

This year, creators selling NFTs on OpenSea earned a total of $1.1 billion, with collections outside the top 10 accounting for 80% of that total.

According to a blog post by Shiva Rajaraman, OpenSea‘s VP of product, who analyzed transactions that included a creator fee between January 1 and November 23, these earnings do not include sponsorship revenue, engagement incentives, or grants.

What OpenSea refers to as “creator fees” are generated by taking a cut on the resale of NFTs on the company’s platform. This was once hailed as a prime use case for artists in the NFT space and a golden egg in the creator economy. They have been hailed as a way for artists to reap recurring benefits as their creations are sold on.

As NFT businesses compete for customers, the levy has become an increasingly fractious topic in recent months. Some marketplaces, such as the Solana-focused Magic Eden, have made that fee optional. In the meantime, Stepn‘s new NFT marketplace Mooar advertised a subscription model.

OpenSea, which has long held the title of one of the largest marketplaces in terms of monthly volume, has so far supported their continued enforcement. It released a tool earlier this month to assist creators launching new collections on the platform in enforcing royalties on-chain. The smart contract code restricts NFT sales to marketplaces that charge creator fees.

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