The standard allows creators to implement programmable and enforceable creator earnings on-chain.
Nonfungible tokens (NFT) trading platform OpenSea has added support for the ERC-721C token standard that allows creators to set and enforce royalties.
According to the April 2 announcement, creators on OpenSea can now enforce earnings via one click. Invented last May by blockchain gaming company Limit Break, ERC-721C solves the problem of NFT wash trading by standardizing token transfer conditions, such as royalties, across all channels. Before their invention, users could easily bypass creator royalty commissions on secondary markets, such as OpenSea and Blur, by transferring NFTs through self-custody wallets or even other NFT marketplaces that did not honor creators' royalty requirements.
"In the long-run, this allowed for the incentivization of zero-fee, royalty-optional trading with airdrops, effectively turning tokens intended to be non-fungible into proxies for fungible tokens," Limit Break explained in a Medium post, adding that "traders were incentivized to farm tokens by wash-trading NFTs among their own wallets, which is bad for the NFT industry."
