52 / Operator filter
The anticompetitive blocklist

OpenSea requires all new NFT projects to enforce on-chain creator fees, but is this anticompetitive in an illegal or legal way? Explore the perspective, motivation, and implementation of NFT royalties in this episode of Community Service Hour.

Timeline

Participants

@fulldecent

William Entriken

@dtedesco1

Daniel Tedesco

@reubenmetcalfe

???

@Rito_Rhymes

Ritorhymes

@digidot

???

@perusojohn

???

@t012n4d0

???

@duribeb

???

@lucasgw

???

@lil_astr_0

Ge

@raxonchain

???

@EllieVoxel

???

@dkarr1234

???

@djing_04

???

@yodude38

???

Episode notes

• OpenSea will demonitize if you list on other marketplaces

• OpenSea requires all new NFT projects to enforce on-chain creator fees, or get demonetized
  • Is this anticompetitive in an illegal or disallowed way?
  • Why didn’t OpenSea just let people opt-out of royalties?
  • Feels like the artist is being held for ransom rather than actually being helped
  • Background
    • https://support.opensea.io/hc/en-us/articles/1500009575482
    • https://twitter.com/opensea/status/1592358043588915202
    • https://twitter.com/fulldecent/status/1596263336630702080
    • How contracts can specify owners and royalties on-chain
      • EIP-173 ownerOf is the way to identify artists today
      • EIP-2981 NFT Royalty Standard
  • Implementation example
    • https://github.com/LightArtists/light-smart-contracts/blob/v2-metadata-editable/contracts/Light.sol
    • onlyAllowedOperatorApproval modifier
  • Is this still better for artists than what was before OpenSea/NFT marketplaces?
  • Spent all this time writing documentation and tweeting about it, but didn’t even implement it in their own store yet
• An extension for token contracts: make setApprovalForAll cheaper
  • Use messages, Gas-free setApprovalForAll
  • Extension of 20/721/1155
  • Doesn’t change how royalties work, if users want to apply royalties
  • Breakdown explanation
    • Have to Approve when listing on OpenSea
    • Signed message doesn’t need to settle on-chain until you actually transfer the token
  • Anyone who works at Blur, X2/Y2, Rarible, Looksrare to try this out?
  • See EIP-1153 royalty router