OpenSea debuts ERC-721C standard for programmable creator earnings

2 weeks ago 5

OpenSea has announced support for the ERC-721C token standard, a new token standard designed to address the issue of enforceable on-chain royalties for NFT creators.

This new standard allows for “programmable earnings” for NFT creators, a solution which OpenSea saw as a response to the long-standing issue of NFT wash trading.

Previously, without ERC-721C, users did not receive royalties when the commissions were programmed outside the initial markets, losing their rights over an NFT when it arrived at secondary markets. NFT royalties range between 2.5% and 10% per sale, at the discretion of the creator. To date, the top 10 NFT collections have earned over $345 million in royalties since their inception.

OpenSea began working on the integration for ERC-721C with Limit Break, the blockchain gaming firm behind the standard’s development. Limit Break’s work on the standard enabled “enforceable” token transfer conditions, such as royalties, across all channels.

The ERC-721C standard, developed by blockchain gaming company Limit Break in May 2022, standardizes token transfer conditions, such as royalties, across all channels. Prior to its introduction, traders could easily avoid paying royalties by transferring NFTs through self-custody wallets or other marketplaces that did not honor creators’ royalty requirements.

Limit Break explains the transition to ERC-721C succinctly in a Medium blog post.

“In the long-run, this allowed for the incentivization of zero-fee, royalty-optional trading with airdrops, effectively turning tokens intended to be non-fungible into proxies for fungible tokens,” in which case “traders were incentivized to farm tokens by wash-trading NFTs among their own wallets, which is bad for the NFT industry,” the blockchain gaming firm said.

Limit Break also said that the new standard is backward-compatible with ERC-721, the base standard for non-fungible tokens.

The March 13 Dencun upgrade on the Ethereum network made compatibility for ERC-721C on OpenSea possible, the NFT platform’s developers said. Creators who enforce their earnings using this standard will have their sales supported only on OpenSea and other marketplaces powered by LimitBreak’s Payment Processor.

However, creators can still manually list their digital artwork on other marketplaces, with OpenSea matching the lowest royalties set by the creator on those platforms. The new feature is also compatible with OpenSea’s Seaport 1.6, which allows NFTs to be sold under certain conditions, such as changing metadata based on sale volume.

To implement the ERC-721C standard, creators using OpenSea Studio can easily set and enforce their earnings percentage and recipient address in their collection settings. For those deploying custom smart contracts, the process involves upgrading their existing contract to be compatible with ERC-721C or ERC-1155-C and then configuring their earnings on OpenSea.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight - and oversight - of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Read Entire Article