Rarity Cuts Ties With OpenSea Over Royalty Issue

The NFT marketplace Rarity has recently defended creator royalties and cut ties with OpenSea, LooksRare, and other platforms that do not enforce royalties. 

Rarity Takes a Stand

In a bold move that underscores its commitment to artist royalties, NFT marketplace Rarity announced its decision to sever ties with OpenSea, LooksRare, and X2Y2, effective September 30. This decision is a staunch defense of creator rights amidst an ongoing debate about NFT royalties.

Rarity, known as a prominent NFT marketplace and aggregator, has been unwavering in its support for artist royalties. The platform’s recent announcement clarified its stance. 

The statement declared, 

“By September 30th, Rarible.com will no longer aggregate orders from OpenSea, LooksRare or X2Y2…We support royalties. We always have. And we always will.”

Redefining Paradigms In Web3 Era

In its public statement, Rarity commended the potential of Web3, emphasizing its promise for artists and creators. Beyond mining NFTs, the platform envisions a redefinition of how creativity is valued and compensated. According to Rarity, the core principle of royalties aligns perfectly with the spirit of decentralization, claiming it to be an ongoing acknowledgment of the creator’s worth in each transaction. 

The platform asserted, 

“We stand in solidarity with creators and artists. That’s why we will no longer support marketplaces that neglect royalties.”

Shifting Stance On Royalties

OpenSea, a significant player in the NFT market, was initially a vocal advocate for creator royalties, offering rates of up to 10%. However, for the completion of its Blur project, it opted to make NFT creator royalties an optional feature. 

The marketplace introduced the Operator Filter tool to ensure royalty payments, but this initiative lacked universal buy-in across the Web3 ecosystem. OpenSea’s CEO, Devin Finzer, acknowledged this shortfall, stating that the desired empowerment of creators hadn’t materialized and recently announced his decision to sunset the Operator Filter. 

The NFT market is witnessing a trend towards optional creator royalties, leaving creators unpaid upon resale. This policy shift has been adopted by various platforms, including LooksRare, Sudoswap, Magic Eden, and X2Y2. While this move aligns with the evolving landscape, it also raises concerns about the financial well-being of artists.

Rarity’s Trading Surges

In the next 24 hours following the announcement, Rarity experienced a notable surge in trading volume. Analytics data from DappRadar illustrated a remarkable 585% spike in 24-hour fiat trading volume on Rarible, surpassing $45,000 on August 23. 

While these figures might be modest compared to industry counterparts, Rarity’s volume leap outperformed OpenSea and LooksRare. The former saw a trading volume decline of approximately 19%, while the latter experienced a staggering drop of around 74%. On the other hand, X2Y2 observed a volume increase of 8.8% over the same period.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.