OpenSea, a leading NFT marketplace, has recently introduced the ERC-721C standard to facilitate creator royalties within its platform.
Developed by Limit Break, this standard enables creators to establish and enforce their earnings directly on the blockchain, granting them greater autonomy over their intellectual property.
By adopting the ERC-721C standard, OpenSea empowers creators to define and uphold their revenue shares on the platform, offering them enhanced control over their creations.
What is ERC-721C?
ERC-721C, short for "Ethereum Request for Comment – 721 Collection", is a token standard specifically designed for non-fungible tokens (NFTs). NFTs are unique digital assets that cannot be replicated or exchanged for another token of equal value. Developed by blockchain gaming company Limit Break in May of the previous year, the ERC-721C standard addresses the issue of creators not receiving adequate compensation for their works in secondary markets.
A key feature of ERC-721C is its provision for creators to enforce royalties on their works directly through the blockchain. This means that whenever an NFT is resold on a secondary market, the creator automatically receives a percentage of the sale price as compensation.
This functionality tackles the problem of "wash trading," where individuals would evade paying creator royalties by using self-custody wallets or trading on platforms that did not honor set royalties. With ERC-721C, creators can ensure they receive fair compensation for their work, even in secondary market transactions.