- OpenSea has shared that until November 23, 2002, creators had made more than $1 billion via royalty payments on the marketplace.
- In recent times, royalties have turned into a topic of debate in the NFT ecosystem.
- The earnings do not include engagement grants or incentives and sponsorship revenue.
OpenSea has announced that over $1 billion have been raised by creator fees in royalties for creators this year. Creator fees lacked existence until the NFT standard was established in 2018.
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. 🧵
Even though the market conditions are fierce, creator fees of this year are revolutionary. This year, creators who utilized OpenSea have made $1.1 billion so far from creator fees. Moreover, 80% of this year’s earnings from creator fees went to collections lying outside the top 10.
The numbers have surprised analysts at OpenSea and the surprise level increased when the creator payouts were compared from other reputed platforms.
Last year in July, Meta announced paying over $1 billion dollars to creators on Instagram and Facebook through the end of this year. TikTok decided to hit $1 billion in payouts in 2020 to creators during the next three years. Snapchat paid $1 million dollars per day to a few top creators and made $365 million in one year. Coming to Patreon, it paid $3.5 billion dollars in total to creators during its nine years in business.
Creator fees have been the target this year with various marketplaces making them optional or removing them with an aim to cut costs for consumers. Creators get royalties from digital collectibles’ secondary sales. Creators set the percentage of sales for royalties while minting and it is approximately 6 to 8%.
OpenSea, on November 9, announced honoring creator fees on current as well as new NFT collections.
1/ After hearing the passionate voices from the creator community last week, we believe marketplaces should honor a creator’s choice to set fees on existing collections, not just new ones. Thread 👇— OpenSea (@opensea) November 15, 2022
We all know that the creator economy is evolving. NFT is providing creators the access to feasible and new business models that are possible to be layered above the current Web2 revenue sources and are the pillars of the NFT space.
Growth of the NFT economy at an exponential pace ensures more creators will utilize them like a tool to fund their personal projects besides charities.
OpenSea has committed to both the interests and rights of creators and will utilize the platform for the promotion of a justified, secure and transparent environment for users.
According to the marketplace, each and every creator has the potential to establish their very own universe. OpenSea is itself hoping to contribute more towards empowering creators and assisting them in generating effective and creative income sources.