{"id":351203,"date":"2023-08-18T20:30:51","date_gmt":"2023-08-18T19:30:51","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=351203"},"modified":"2023-08-18T19:38:36","modified_gmt":"2023-08-18T18:38:36","slug":"mark-cuban-slams-openseas-optional-nft-royalties-as-industry-misstep","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/mark-cuban-slams-openseas-optional-nft-royalties-as-industry-misstep\/","title":{"rendered":"Mark Cuban slams OpenSea&#8217;s optional NFT royalties as industry misstep"},"content":{"rendered":"<p><span class=\"s4\"><span class=\"bumpedFont15\">Billionaire investor Mark Cuban criticized OpenSea's decision to make royalties payment on non-fungible tokens (NFT) optional, describing it as a &#8220;HUGE MISTAKE&#8221; that would hurt the industry and diminish trust, according to an Aug. 18 <a href=\"https:\/\/twitter.com\/mcuban\/status\/1692541974484549925?s=20\">tweet.<\/a><\/span><\/span><\/p>\n<h2><span class=\"s6\"><span class=\"bumpedFont15\">NFT royalties<\/span><\/span><\/h2>\n<p>On Aug. 17, OpenSea <span class=\"s4\"><span class=\"bumpedFont15\"><a href=\"https:\/\/opensea.io\/blog\/articles\/creator-fees-update\">stated<\/a> that it would stop enforcing creator royalty fees on secondary sales by the end of this month.<\/span><\/span><\/p>\n<p>Usually, NFT creators receive royalties with every sale of their assets on platforms like OpenSea. These royalties, capped at 10% on OpenSea, vary across marketplaces; LooksRare and SudoSwap, for instance, offer the option for creators to choose their royalty model.<\/p>\n<p><span class=\"s4\"><span class=\"bumpedFont15\">The marketplace decision to make royalties voluntary came after it had lost <a href=\"https:\/\/cryptoslate.com\/nfts-jump-to-27-of-eth-gas-usage-led-by-blur-marketplace\/\">market share<\/a> to competitors like Blur, which <a href=\"https:\/\/cryptoslate.com\/blur-plummets-84-following-360m-token-airdrop\/\">introduced<\/a> optional royalty payments and other trading <a href=\"https:\/\/cryptoslate.com\/blur-reveals-additional-300m-token-airdrop-to-loyal-users\/\">incentives<\/a> to draw more users to its platform.\u00a0<\/span><\/span><\/p>\n<p>OpenSea's NFT trading volume dropped to less than 25% from a peak of more than 90% within a year, according to Dune analytics <a href=\"https:\/\/dune.com\/hildobby\/NFTs\">data<\/a>. The marketplace has been trying to regain dominance by <a href=\"https:\/\/cryptoslate.com\/opensea-taps-moonpay-to-enable-nft-purchases-via-bank-cards\/\">introducing<\/a> new measures to attract more users.<\/p>\n<h2><span class=\"s4\"><span class=\"bumpedFont15\">Cuban argues for royalties\u00a0<\/span><\/span><\/h2>\n<p><span class=\"s4\"><span class=\"bumpedFont15\">Cuban described OpenSea's latest decision on royalties as a <\/span><\/span><a href=\"https:\/\/twitter.com\/mcuban\/status\/1692545364388204925?s=20\"><span class=\"s5\"><span class=\"bumpedFont15\">desperate<\/span><\/span><\/a><span class=\"s4\"><span class=\"bumpedFont15\"> move, arguing that it was misguided.<\/span><\/span><\/p>\n<p><span class=\"s4\"><span class=\"bumpedFont15\">In his <\/span><\/span><a href=\"https:\/\/twitter.com\/mcuban\/status\/1692546050496602159?s=20\"><span class=\"s5\"><span class=\"bumpedFont15\">view<\/span><\/span><\/a><span class=\"s4\"><span class=\"bumpedFont15\">, the major problem was enforcing royalties across all NFT marketplaces, which should be fixed. But he disagreed that optional royalty was the way forward.<\/span><\/span><\/p>\n<blockquote><p><span class=\"s4\"><span class=\"bumpedFont15\">&#8220;The optional royalty approach kills future applications that go far beyond collectibles. Which is where the most money will be,&#8221; he added.<\/span><\/span><\/p><\/blockquote>\n<p><span class=\"s4\"><span class=\"bumpedFont15\">Cuban is an investor in OpenSea.<\/span><\/span><\/p>\n<p><span class=\"s4\"><span class=\"bumpedFont15\">Meanwhile, some users pointed out that OpenSea had no choice if it wanted to maintain its relevance in the industry.<\/span><\/span><\/p>\n<p>Sheetfu, the CDO of the dominant NFT marketplace on the Solana (<a href=\"https:\/\/cryptoslate.com\/coins\/solana\/\">SOL<\/a>) network MagicEden, <a href=\"https:\/\/twitter.com\/ChartFuMonkey\/status\/1692548106590540211?s=20\">opined<\/a> that this wa<span class=\"s4\"><span class=\"bumpedFont15\">s a problem with the tech and that the solution <\/span><\/span><span class=\"s5\"><span class=\"bumpedFont15\">should<\/span><\/span><span class=\"s4\"><span class=\"bumpedFont15\"> be at the protocol level. According to him, creators should be allowed to use different ways to enforce royalties.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Billionaire investor Mark Cuban criticized OpenSea&#8217;s decision to make royalties payment on non-fungible tokens (NFT) optional, describing it as a &#8220;HUGE MISTAKE&#8221; that would hurt the industry and diminish trust, according to an Aug. 18 tweet. NFT royalties On Aug. 17, OpenSea stated that it would stop enforcing creator royalty fees on secondary sales by [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":351211,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76232],"tags":[75047,76704],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Mark Cuban slams OpenSea&#039;s optional NFT royalties as industry misstep<\/title>\n<meta name=\"description\" content=\"Billionaire investor Mark Cuban heavily criticized OpenSea&#039;s decision to enforce optional royalty payments in a tweet.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/mark-cuban-slams-openseas-optional-nft-royalties-as-industry-misstep\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mark Cuban slams OpenSea&#039;s optional NFT royalties as industry misstep\" \/>\n<meta property=\"og:description\" content=\"Billionaire investor Mark Cuban heavily criticized OpenSea&#039;s decision to enforce optional royalty payments in a tweet.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/mark-cuban-slams-openseas-optional-nft-royalties-as-industry-misstep\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-18T19:30:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-18T18:38:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/08\/mark-cuban.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/mark-cuban-slams-openseas-optional-nft-royalties-as-industry-misstep\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/mark-cuban-slams-openseas-optional-nft-royalties-as-industry-misstep\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/profile-oluwapelumi-adejumo-1-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/profile-oluwapelumi-adejumo-1-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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