Two of the biggest names in the NFT space, Yuga Labs and OpenSea, are clashing over the future of NFT creator payments. Yuga Labs has announced that it will block the ability to trade its newer NFTs on OpenSea starting in February 2024. This decision comes in response to OpenSea’s move to stop collecting royalties on behalf of NFT creators. Yuga Labs, known for its Bored Ape Yacht Club and CryptoPunks collections, saw royalty fees amounting to tens of millions of dollars. However, as the NFT market has deflated, marketplaces like OpenSea have been cutting artists out of the picture to lower fees and attract sellers. While not all of Yuga’s NFTs will be affected by the ban, the protest aims to disallow OpenSea from trading their collections as they phase out royalties. OpenSea had attempted to enforce creator fees but ultimately made them optional as of March 2024. Many NFT businesses rely on these fees to generate revenue and increase the value of their tokens. Yuga Labs firmly believes in protecting creator royalties to ensure proper compensation for their work.
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