Blur’s Royalty Policy and Its Implications for NFT Creators

02/16/2023 00:10 • AI Insights • 110 views

According to reports, according to Blur’s official announcement, the NFT market announced the renewal of the royalty policy, which outlined some options of the creator’s royalty, each of which would have different impacts on Blur, the creator and OpenSea (Blur’s independent competition), mainly involving four situations: 1. If the collection does not use Block, it will not be able to ban the zero or optional royalty market, in which case Blur will charge 0.5% of the royalty, OpenSea is an optional royalty; 2. Block Blur, any NFT project that prohibits Blur or other zero royalty/royalty optional markets will be subject to compulsory royalty enforcement on OpenSea, but the transaction can still be conducted on Blur, requiring a minimum royalty of 0.5%; 3. Blur recommends not to use OpenSea. Blur hopes that the creator will not use OpenSea. Any NFT project that does not use OpenSea will be subject to full royalties on Blur; 4. Blur requires OpenSea to cancel the setting of optional royalties for NFT projects on Blur. If OpenSea cancels this policy, NFT projects can collect royalties on both platforms at the same time. At present, NFT project creators cannot collect royalties on Blur and OpenSea at the same time. They can only collect all royalties on OpenSea or Blur at the same time, but not at the same time.

Blur issued a royalty update policy, including recommending not to use OpenSea

Analysis based on this information:

Blur, the NFT market, recently announced the renewal of its royalty policy, which has implications for both creators and competitors like OpenSea. The policy outlines four different situations that address the usage of the Block and the royalty rates that creators and Blur will receive.

If the collection does not utilize the Block feature, then it cannot ban the zero or optional royalty market. In such cases, Blur will charge a royalty fee of 0.5%, while OpenSea will continue to offer an optional royalty rate.

On the other hand, if any NFT project blocks Blur or any other zero royalty/royalty optional markets, it will be subject to compulsory royalty enforcement on OpenSea. However, transactions can still occur on Blur, albeit with a mandatory royalty rate of 0.5%.

Blur recommends NFT creators to avoid using OpenSea due to its full royalty policy. Any project that does not use OpenSea will be subject to full royalties on Blur, which may incentivize creators to use Blur exclusively.

Finally, Blur demands OpenSea cancels the optional royalty feature. If OpenSea cancels the policy, NFT projects can collect royalties on both platforms simultaneously. Currently, creators cannot collect royalties on both platforms, only on OpenSea or Blur, but not on both.

The renewal of the royalty policy can be interpreted as Blur’s attempt to differentiate itself from its competitors by offering more attractive royalty rates to NFT creators. The policy incentivizes creators to avoid using OpenSea to save on the full royalty rates, and to utilize the Block feature to keep optional royalty rates.

Additionally, the policy may also have implications for the larger NFT market, as competitors such as OpenSea may need to consider revising their own royalty policies in response to Blur’s policy changes.

In summary, Blur’s royalty policy renewal is a significant shift in the NFT market, providing creators with new options for receiving royalties based on different conditions. The policy may encourage creators to favor Blur over competitors like OpenSea, giving Blur a competitive advantage in the broader NFT market.

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Blur’s Royalty Policy and Its Implications for NFT Creators

Blur issued a royalty update policy, including recommending not to use OpenSea

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