OpenSea supports ERC-721C programmable yield standard

Author: Zhiyuan Sun, CoinTelegraph; Compiled by: Whitewater, Golden Finance

The non-fungible token (NFT) trading platform OpenSea has added support for the ERC-721C token standard, allowing creators to set and mandatory royalties.

Per an announcement on April 2, Creators on OpenSea can now enforce earnings with one click. ERC-721C, launched last May by blockchain gaming company Limit Break, solves the problem of NFT wash trades by standardizing token transfer conditions (such as royalties) across all channels. Prior to their launch, users could easily bypass creator royalty commissions on secondary markets such as OpenSea and Blur by transferring NFTs through self-hosted wallets or even other NFT marketplaces that did not respect creator royalty requirements.

“In the long term, this could incentivize zero-fee, royalty-free transactions via airdrops, effectively Non-fungible tokens transform into proxies for fungible tokens,”Limit Break explained in a Medium article, adding that “Traders wash trade NFTs in their own wallets To obtain tokens, this is not good for the NFT industry."

According to OpenSea developers, only the Dencun upgrade on the Ethereum network on March 13 enabled compatibility with ERC-721C. "Sales are only supported on OpenSea and other marketplaces powered by the LimitBreak payment processor if you follow the steps above to enforce creator earnings," the platform said. After deploying the ERC-721C contract on OpenSea, creators can still earn Other marketplaces manually list their digital artwork, but OpenSea will also match the minimum royalties creators set on other platforms.

The feature is also compatible with OpenSea’s Seaport 1.6, which programs NFTs to only be sold under certain conditions, such as changing metadata based on sales volume. Although largely at the discretion of their creators, NFT royalties typically range from 2.5% to 10% of each sale. Since their inception, the top 10 NFT collections have earned over $345 million in royalties.