Popular NFT marketplace Open sea has announced the implementation of the ERC-721C creator royalty standard.
Developed by Limit Break, this standard enables programmable and enforceable creator monetization across the chain, giving creators more control over their intellectual property.
The ERC-721C standard allows creators to set and enforce monetization on the platform.
Source: OpenSeaWhat is ERC-721C?
ERC-721C, or ‘Ethereum Request for Comment – 721 Collection’, is a token standard developed by Limit Break to address the issue of creators not receiving adequate compensation for their work in secondary markets.
One of the key features of ERC-721C is its ability to allow creators to enforce royalties on their works directly through the blockchain. This means that when an NFT is resold on a secondary market, the creator automatically receives a percentage of the sale price as compensation.
This feature aims to address the problem of ‘wash trading’, where individuals avoid paying royalties to creators through various means, such as self-managed wallets or non-compliant trading platforms.
With ERC-721C, creators can ensure they receive appropriate compensation for their work, even in secondary market transactions.
How do creators on OpenSea qualify?
To qualify for this feature, NFT smart contracts must meet the ERC-721C standard or be upgradeable to a standard.
Creators can enable ERC-721C compatibility within the OpenSea Creator Studio. Collections created through OpenSea Studio can command creator monetization within their institutions. Similarly, for collections deployed using ERC721-C or ERC1155-C compliant custom smart contracts, creators can manage their revenue through the OpenSea Studio.
The integration of the ERC-721C standard builds on the Ethereum network upgrade known as Dencun, which took place on March 13, 2021.
Enforcing creator revenue under ERC-721C standards will limit sales exclusively to OpenSea and other marketplaces powered by LimitBreak’s Payment Processor, such as Magic Eden, with royalties potentially matching those of creators with the lowest fee structures on other platforms.
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