Popular non-fungible token (NFT) marketplace OpenSea announced support for the ERC-721C token standard, a game-changer for NFT creators. This new standard empowers creators to set and enforce royalty payments on their creations, addressing a long-standing challenge in the NFT space.
Previously, creators on OpenSea and other platforms relied on the goodwill of buyers to honor royalty fees. With ERC-721C, creators can now embed royalty enforcement directly within the NFT itself. This ensures they receive a percentage cut every time their NFT is resold on any marketplace compatible with the standard.
Developed by blockchain gaming company Limit Break in May 2022, ERC-721C tackles the issue of “wash trading,” a tactic where creators would buy and sell their own NFTs back and forth to inflate artificial sales volume. By enforcing royalties on all transfers, ERC-721C discourages wash trading and ensures creators receive fair compensation for their work.
OpenSea’s integration with ERC-721C is a significant step towards a more sustainable and creator-centric NFT ecosystem. Here’s a breakdown of the key points:
- One-click enforcement: Creators can now enable royalty enforcement on their NFTs with a single click during the minting process on OpenSea.
- Standardized royalties: ERC-721C ensures consistent royalty enforcement across all compatible marketplaces, eliminating loopholes for buyers to avoid royalty payments.
- Potential limitations: It’s important to note that currently, ERC-721C functionality is only supported on OpenSea and other marketplaces that utilize Limit Break’s payment processor. NFTs minted with ERC-721C might not be tradable on platforms outside this ecosystem.
OpenSea’s move is a positive development for the NFT market. By empowering creators to control their earnings, ERC-721C has the potential to attract more artists and developers to the NFT space, fostering a more vibrant and sustainable creator economy.
