OpenSea debuts ERC-721C standard for programmable creator earnings
OpenSea, a leading NFT marketplace, has introduced support for the ERC-721C token standard, aiming to address the issue of enforceable on-chain royalties for NFT creators. This new standard, developed by blockchain gaming company Limit Break, allows for "programmable earnings" for NFT creators, providing a solution to the problem of NFT wash trading.
Previously, without ERC-721C, creators did not receive royalties when NFTs were sold in secondary markets, as the commissions were often programmed outside the initial marketplaces. With royalties typically ranging from 2.5% to 10% per sale, creators were missing out on potential earnings. The integration of ERC-721C enables enforceable token transfer conditions, such as royalties, across all channels, ensuring creators receive their deserved earnings regardless of where the NFT is sold.
The introduction of the ERC-721C standard is seen as a significant step forward in ensuring fair compensation for NFT creators. By standardizing token transfer conditions, including royalties, creators have greater control over their earnings and can trust that their rights will be upheld across different marketplaces.
OpenSea's support for ERC-721C comes following the Ethereum network's Dencun upgrade on March 13, which made compatibility for the standard possible. Creators using OpenSea Studio can easily set and enforce their earnings percentage and recipient address in their collection settings. Additionally, the new feature is compatible with OpenSea's Seaport 1.6, allowing for NFTs to be sold under specific conditions, such as changing metadata based on sale volume.
While creators using ERC-721C will have their sales supported on OpenSea and other marketplaces powered by LimitBreak's Payment Processor, they can still manually list their artwork on other platforms, with OpenSea matching the lowest royalties set by the creator. This flexibility ensures that creators can maximize their earnings while maintaining control over their digital assets.
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