80% of the $1.1 billion generated by creators who sold NFTs on the marketplace this year went to collections outside the top 10, according to OpenSea. To continue collaborating with creators and upholding their rights and deliver investors with the highest caliber assets, the platform strives to do so.
The NFT Inventors Receives $1 Billion in Royalties
The figures signal a new day for those who created NFT. Even in a choppy market, this year's payments are still novel. There were no creator fees prior to the NFT standard's establishment in 2018. More creators were invited with the aid of OpenSea.
Grants, engagement incentives, and sponsorship income are not included in these revenues. According to a blog post by Shiva Rajaraman, vice president of product at OpenSea, the transactions between January 1 and November 23 included a creator fee.
The numbers shocked OpenSea market observers, especially when compared to the creator compensation of other well-known platforms. The information indicated that Facebook and Instagram artists will receive more than $1 billion in compensation between July 2021 and December 2022.
2022 has been a *wild* ride and we want to close it out with a stat that makes us *really* excited for the future:
— OpenSea (@opensea) November 30, 2022
THIS YEAR, creators earned over $1 BILLION from creator fees using OpenSea. 🧵
It is a DeFi platform that is operating much more effectively than conventional financial institutions. In 2020, TikTok made a commitment to pay creators $1 billion over the ensuing three years. Snapchat was also paying some of its best producers $1 million per day, for a total of $365 million annually.
Patreon has paid creators a total of $3.5 billion in its nine years of business (as of 2021). Up until this moment, its ongoing enforcement has been supported by OpenSea, which has long maintained the status of one of the largest marketplaces in terms of monthly volume.
OpenSea Pledges to Safeguard NFT Developers
By implementing on-chain royalties, OpenSea last month created a tool to help producers who are launching new collections on the platform. The smart contract's code limits NFT sales to platforms with creator fees.
In an effort to lower customer costs, some marketplaces this year made creator fees optional or completely eliminated them. An innovative feature of web3 is creator fees, which for the first time let producers share in the profits from resales.
OpenSea supports the NFT ecosystem, in which every creator is free to create their own universe. They want to do more to empower creators and support the creation of innovative and effective new revenue streams.
They serve as a reminder that, even though many NFT marketplaces have struggled with stability and value over the years, OpenSea's commitment to upholding its community has endured.
