OpenSea, a leading player in the NFT ecosystem, has recently announced significant changes to its creator fee strategy. While these changes embrace certain DeFi principles, they have also raised concerns within the NFT community, challenging the notions of digital ownership and the role of royalties in supporting artists. This critical analysis dives into the implications of OpenSea’s decision, its departure from traditional practices, and the commentary from notable figures like Mark Cuban.

We launched our Operator Filter so creators could restrict secondary sales to web3 marketplaces that enforce creator fees.

But we relied on opt-in by the entire ecosystem, which didn't happen. So we’re making a few changes to our approach to creator fees.

— OpenSea (@opensea) August 17, 2023

Unpacking OpenSea’s Strategy

OpenSea’s original vision, embodied in the Operator Filter, aimed to enforce creator fees on secondary sales across web3 platforms. However, the reliance on ecosystem-wide opt-in hindered its success, prompting OpenSea to pivot its approach to creator fees. Starting from August 31, new collections will have optional creator fees on secondary sales. This move, while aligned with some DeFi principles, contradicts the traditional concept of royalties and digital ownership.

Impact on Digital Ownership and Royalties

One of the driving forces behind the NFT revolution has been the potential for artists to earn royalties on secondary sales of their work. This concept aligns with the idea of digital ownership, where creators continue to benefit from the appreciation of their art. OpenSea’s shift to optional creator fees dilutes this principle, potentially weakening the bond between artists and collectors and raising questions about the long-term sustainability of artists within the NFT ecosystem.

Mark Cuban’s Concerns

Mark Cuban, a notable investor and figure in the tech industry, expressed his criticism of OpenSea’s move, particularly its decision to forego collecting and paying royalties. Cuban sees this as a significant misstep that undermines trust in the platform and has the potential to harm the industry as a whole. His comments highlight the tensions between the new-age DeFi approach and the more established art world practices that have fueled interest in the NFT space.

Not collecting and paying royalties on NFT sales is a HUGE mistake by @opensea. It diminished trust in the platform and hurts the industry. And I say this as an @opensea investor @DevinFinzer

— Mark Cuban (@mcuban) August 18, 2023

Navigating the Future

OpenSea’s acknowledgment of the importance of choice in creator fees is not without merit. The web3 landscape offers various revenue streams beyond royalties, and flexibility is crucial for both creators and collectors. However, striking a balance between these emerging DeFi ideals and the traditional mechanisms that have driven the NFT movement’s appeal remains a challenge.

OpenSea’s shift in creator fees marks a notable departure from the established norms of digital ownership and royalties that have been pivotal to the NFT ecosystem’s growth. While the move aligns with some DeFi principles, it also raises questions about the future dynamics between artists, collectors, and platforms. As the NFT landscape continues to evolve, striking a balance between innovation and the preservation of core values will be essential to ensuring the continued success and trustworthiness of the ecosystem.

What Comes Next?

New Approach: Starting from August 31, OpenSea will be embracing a new approach to creator fees, focusing on flexibility and choice. Here’s what you can expect:

1. Sunset of Operator Filter: The Operator Filter, which aimed to restrict secondary sales to platforms enforcing creator fees, will be discontinued.
2. Optional Creator Fees: For new collections, creators will have the option to apply fees on secondary sales. This approach empowers creators to decide whether to implement creator fees based on their preferences.
3. Enhanced Visibility: OpenSea is dedicated to enhancing the visibility of creator fee settings and listings for both buyers and sellers. This ensures transparency and informed decision-making within the ecosystem.

Impact on Existing Collections: For existing collections, OpenSea’s new approach will be applied as follows:

• Collections Using Operator Filter: Preferred creator fees will be enforced on OpenSea until February 29, 2024, after which they become optional.
• Collections Not Using Operator Filter: There will be no change in the fee structure for collections that haven’t utilized the Operator Filter.

Product Enhancements: To provide a seamless experience for users, OpenSea is introducing several product updates:

• Collection Page Filter: A filter will be integrated on the collection page, allowing buyers to easily identify listings with preferred creator fees.
• Item Page Highlight: Listings with creator fees will be highlighted on the item page, offering better visibility to potential buyers.
• Seller Experience: Sellers will have an enhanced interface to either select the creator’s preferred fee or customize the creator fee, offering more control and personalization.

Learnings and Implications: OpenSea’s journey has revealed important insights:

• Opt-In Challenge: The Operator Filter’s reliance on ecosystem-wide opt-in highlighted the complexities of implementing uniform fee structures.
• Importance of Choice: Acknowledging that creator fees are significant for both collectors and creators, OpenSea’s new approach empowers individual preferences.
• Diverse Revenue Streams: OpenSea recognizes that creator fees are just one facet of the many revenue opportunities available to creators within the web3 landscape.

TL;DR: OpenSea’s transition to optional creator fees on secondary sales, departing from traditional royalty practices, raises concerns about the impact on digital ownership and artists’ sustainability. The move, influenced by DeFi ideals, is criticized by figures like Mark Cuban, who believe it could undermine trust in the platform and the NFT industry as a whole. Balancing innovation with the core values of the NFT movement remains a challenge as the ecosystem evolves.

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TLDR: The Bitcoin Frontier Fund announces its Bitcoin Ordinals accelerator program, offering startups $100k in funding, unparalleled networking opportunities, and top-tier mentorship. With applications in full swing and a strong emphasis on mutual growth, the initiative heralds a promising future for the Bitcoin Ordinals domain.

BFF Ordinals

In a groundbreaking move that promises to reshape the blockchain sphere, the Bitcoin Frontier Fund (BFF), formerly known as Stacks Ventures, is keen to invigorate the uncharted territories of the Ordinals domain. The fund recently announced its unique accelerator program, a beacon of hope for budding startups in the sector.

BFF’s offering stands at a substantial $100,000 in seed capital. This financial infusion, however, is complemented by unparalleled access to an ecosystem of premier builders, investors, and industry veterans. Startups, based on their prior funding milestones, are expected to part with a 2-3% equity stake in exchange for this golden opportunity.

1/ BIG NEWS!

We're excited to offer Bitcoin Ordinals founders $100k in funding, an amazing community of top builders and investors

And first-class support for raising funds and product growth!

Applications are NOW open! Program starts Q4.

A Thread pic.twitter.com/MOreuFmUIT

— trevor.btc (@TO) August 14, 2023

Bitcoin Frontier Fund & Ordinals

The eligibility criteria, while a tad ambiguous, tilt towards realms like infrastructure, tangible Web3 applications, cutting-edge developer tools, and overall accessibility. The initiative doesn’t stop at mere financial support, though. BFF intends to elevate these startups with first-class assistance in product expansion and fundraising. With applications now open, the accelerator program will commence in the fourth quarter.

Trevor, a notable figure in the crypto domain and a proponent of the program, elucidated on the multifaceted benefits via a Twitter thread. A standout aspect of the BFF initiative is its unparalleled network strength. Participants can establish invaluable connections in record time, garner feedback, and catalyze the buzz surrounding their ventures. The potential momentum garnered promises startups a significant head-start in their journey.

Diving deeper into BFF’s offerings, it extends beyond mentorship. Their expansive network includes over 50 portfolio companies, poised to revolutionize business development endeavors for startups. Whether it’s introductions to heavyweights like Xverse, OrdinalsBot, ALEX, Gamma, or Liquidium, BFF’s ethos centers around fostering mutual growth.

The introduction of Ordinals, a brainchild of Bitcoin developer Casey Rodarmor, in January 2023 has piqued interest across the blockchain and cryptocurrency arenas. Serving as unique inscriptions on digital asset units, they echo the notion of limited-edition lithograph prints by artists. Their versatility extends to inscribing data, rendering functionalities similar to nonfungible tokens. With Ethereum’s mastermind, Vitalik Buterin, endorsing them, Ordinals have certainly made a splash. However, the technology’s advent has also birthed debates concerning its alignment with Bitcoin’s core philosophy.

In the grander scheme, Ordinals are far from being a transient trend. This sentiment finds validation in Xverse’s trajectory, a company accelerated by BFF. They recently announced securing $5 million in funding and amassing an enviable user base of over 350,000.

In conclusion, with collective efforts from the community and BFF’s accelerator program, the future trajectory of Ordinals seems poised for the stratosphere.

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Non-fungible tokens (NFTs), a novel and exciting form of digital asset, have seen an incredible journey since their introduction to the world in 2017. They have created a new market, influenced the global lexicon, and redefined the concept of ownership in the digital world. However, like any financial market, the NFT market has seen its fair share of highs and lows. This blog post aims to explore the current slump in the NFT market, delve into its causes, and discuss why the term NFT is still solidifying its place in our vocabulary and why the value of these digital assets remains indisputable.

The Ups and Downs of the NFT Market

The NFT market burst onto the scene with the introduction of CryptoKitties in 2017 and has grown exponentially since then. By 2021, the market capitalization of NFTs had surpassed a staggering $40 billion, encompassing a variety of collections such as art, metaverse tokens, and gaming collectibles, among others.

However, every market has its ups and downs, and the NFT market is no exception. The crypto market faced a downturn in 2022, which negatively impacted the demand for NFTs. Prices fell, and sales dried up, leading to a mass exodus of buyers and sellers from the market.

The slump has continued into 2023, with NFT sales taking a considerable hit in the month of May. The trading volume for the month reached only $333 million, putting May on track to be the first month in the year with a trading volume under $1 billion.

Factors Impacting the NFT Market

Several factors have contributed to this slump, including the recent memecoin frenzy and a surge in Ethereum gas fees. A considerable number of crypto traders sold their NFT holdings at a loss at the beginning of May to participate in the volatile frog-themed token, Pepe (PEPE). This increased on-chain activity, subsequently driving Ethereum’s gas fees above $100. This surge in transaction costs negatively impacted the volume of low-value NFT trades on the blockchain, as traders grappled with affordability concerns.

It’s worth noting that Ethereum continues to be the dominant NFT chain, controlling 81% of the trading volume in May. However, it’s responsible for only 5.7% of the total number of NFT sales, indicating that it’s primarily being used for higher-volume transactions.

Signs of Hope in the NFT Market

Despite the slump, there are still signs of life in the NFT market. In fact, May saw a 27% increase in the average number of daily unique active wallets interacting with NFTs, compared to April. This bump was attributed to the fanfare surrounding the new “Milady Maker” NFT collection.

Furthermore, several promising developments are unfolding in the NFT space. As 2023 advances, investors who understand the digital economy or wish to add NFTs to their portfolios should keep an eye on Artificial Intelligence (AI) NFTs, music NFTs, fractional NFT games, and NFT ticketing.

Another emerging use case involves NFT loans. Investors are securing loans for potential companies using their NFTs and NFT collections as collateral, illustrating the tangible value of these digital assets.

Moreover, brands across industries are showing increased interest in NFTs and developing innovative strategies to participate in the market. From food corporations like Taco Bell and McDonald’s to luxury brands like Louis Vuitton and Nike, companies are using limited-edition NFT collectibles to boost social media engagement, build customer loyalty, and even assist charities.

Lastly, NFTs are transforming the TV and film industry. NFT TV series are emerging, and NFTs are being used to fund various TV shows and film projects. Samsung has even announced an “NFT Aggregation Platform” in its newest TV models, allowing viewers to browse and purchase NFTs directly from their television.

Conclusion

The journey of the NFT market serves as a reminder that financial markets are never linear. They have their peaks and valleys. And while the NFT market may be down, it’s far from out. NFTs are still cement ing their place in the digital economy, and with the development of new use cases and continued interest from various industries, they are likely to remain a significant player in the world of cryptocurrencies and blockchain technology. Despite the current downturn, it is important to note that market conditions can change rapidly, and the future of NFTs may hold many surprises.

The post Down But Not Out: The Staying Power of NFTs Amidst a Market Slump appeared first on NFT CULTURE.

Gaming nfts are here the term gamefi  is taking the space by storm. Over the last year a lot of new gaming focused projects have been launched. This new sector of utility for ntfs is an interesting concept as web 3 continues to grow. One of the biggest issues with Legacy gaming from Skins to end game tokens and currencies is that ultimately the studio and Publishers own the rights to everything. If a game gets abandoned or shuts down all of the Investments that were made are lost. The blockchain provides an interesting new way to allow these types of projects to live on.

What is GameFI?

For all intents and purposes this new category is the combination of Gaming and finance or ownership. Defy has been around for a few years and many tokens have been launched exploring new and unique ways to create well 3 yield staking and more but the rapid growth of in Estes has created a brand new category to explore. As digital ownership becomes more prevalent and relevant in the space we suspect that more and more studios are going to explore how the ideas of transferred ownership from Studios to collectors will change and evolve.

While the category is still relatively immature, the idea that I can own my character or my skin or even parts of the economy is revolutionary for this new asset class. Let’s start with ownership, owning an nft is really just proof of record on a blockchain that you own the contract and the corresponding image associated with it. The ability to own your skin in a game or even own your character provides a unique way to allow collectors 2 prove that they own the in-game assets. This provides two things: first it allows The Collector through proof of ownership to show if an item is scarce or not. For example end the popular game fortnite epic games May release a set of skins for a. Of time and imply scarcity. There is nothing stopping big games from re-releasing that skin at a future date for a future season. We have already seen many examples of Epic doing this and when that happens the scarcity around that item diminishes. Additionally ownership of that character or skin provides additional interesting utility and that hypothetically you could use that character or skin or item in other games or even the metaverse. To put it simply as long as there is a set of Standards around these characters and skins if epic games were too so choose to allow nft used to be used in fortnite for example, collectors could use their individual Bored Apes, Clone X,  or any other 3D avatars that they own.

 While the future is bright for gaming nfts most of the Innovation is being done by defy startups and not major Studios. The general public is still reluctant to embrace digital ownership and web 3 ends the pushback from many journalists and Gamers around the idea of nfts remains strong. We believe that the outcome of web3 gaming is inevitable once people understand that they can own the assets that they’re spending their hard-earned money on. Eventually enough momentum will break through and in the future this will be the norm.

GameFi Economies

Many web 3 games are using these non-fungible tokens in lieu of seed rounds or external investment. but they are also introducing unique mechanisms that allow collectors to make money on they’re bats. The concept play-and- earn has gained popularity over the last year where collectors earn in-game currency that is based on its own token and players can extract those tokens in the form of erc20 tokens and sell them on exchanges. There are pros and cons to this mechanism and we have seen examples including Axie Infinity running into turbulence as the market matures and exploits are found. Another popular mechanism that is used buy games like crypto Raiders is the Dual currency component essentially there is a governance token as well as an in-game token and staking your governance tokens allows you to earn in-game currency that you can then use to play the game or sell to others that may want to short cut their gaming experience.

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We’re excited to announce that Nyan Heroes is integrating Chainlink Price Feeds on Solana! By integrating the industry-leading decentralized oracle network, we now have access to high-quality, decentralized price data that will help build a user-friendly experience on our NFT marketplace for Nyan Heroes!

We chose Chainlink because it is the most widely used and time-tested decentralized oracle network. Chainlink Price Feeds have already helped secure $75B+ in value for leading DeFi protocols across the multi-chain ecosystem. For the purposes of building a high-quality NFT marketplace for Nyan Heroes users, Chainlink Price Feeds will enable user-friendly price conversions in our dashboard display. 

 Why is picking the right price feeds important?

 When the game launches and players are on board, we expect to see a significant and consistent inflow of players actively playing and trading on the NFT marketplace. It is  critical that Nyan Heroes’ marketplace token prices, which will be supplied on-chain through Chainlink Price Feeds, are delivered in a highly reliable and timely manner so that users have access to accurate price information. Token prices should reflect a volume-weighted average from all trading environments so that we are resistant to any single source of failure. Thus we need to utilize a blockchain middleware solution known as an oracle to fetch aggregated, off-chain price data continuously and deliver it on-chain directly to our NFT marketplace.

By integrating Chainlink Price Feeds, all Nyan Heroes players will have access to high-quality, tamper-proof price feeds that help ensure accurate pricing when interacting with our immersive and dynamic gaming ecosystem and NFT marketplace.

We made the decision to integrate Chainlink Price Feeds after considering a multitude of other price data feed solutions. Features that we found superior in Chainlink:

• • High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned from outliers and suspicious volumes. Their data aggregation model generates more precise global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
  • Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises with a strong track record for reliability, even during high gas prices and extreme network congestion. 
  • Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either a data provider or the oracle network.

• Transparency — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical performance of node operators and oracle networks, as well as check the real-time prices being offered.

Our goal first and foremost has always been to make the game sustainable, safe, and fair to all users. With Chainlink Price Feeds, players will be able to freely trade in-game assets with peace of mind that the prices they’re seeing are aggregated by a wide range of data sources and independent oracle nodes.  

​​“Chainlink is the oracle service of choice for Nyan Heroes and we look forward to integrating its real-time price feeds into our game service to provide accurate decentralized data, giving our players peace of mind when they transact on the future NFT marketplace.” – Max, Nyan Heroes Co-founder.

  ॱ ॱ ॱ

 About Chainlink

Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Learn more about Chainlink by visiting chain.link or read the documentation at docs.chain.link. To discuss an integration, reach out to an expert. 

 Learn more about Nyan Heroes recent development

Staking to Earn CTNP

Nyan Heroes In-Game Economy

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