Yuga Labs, the creators behind the famed Bored Ape Yacht Club (BAYC) NFT collection, have made a significant announcement: their partnership with OpenSea is coming to an end.

The decision comes in response to OpenSea’s plans to transition to a discretionary royalties structure, which has sparked controversy within the NFT community.

This move marks a notable development in the dynamic landscape of NFT marketplaces and royalties.

OpenSea’s decision to eliminate the requirement for royalties in new collections starting from August 31, 2023, has sent ripples through the NFT ecosystem.

The modification, announced on August 17, also involves the disabling of the Operator Filter—a mechanism that enforces creator royalties—on the NFT marketplace.

However, OpenSea’s notification clarifies that collections utilizing the Operator Filter before August 31 will still be subject to mandatory creator royalties until February 29, 2024.

OpenSea’s rationale for introducing the Operator Filter was to grant developers a stronger voice in the platform. Despite this intention, the Operator Filter hasn’t gained the expected traction or recognition within the web3 community, leading to a contentious discourse within the NFT space.

Yuga Labs responded to OpenSea’s decision by taking to Twitter with a tactful open letter expressing their concerns.

In this letter, the creators of BAYC revealed their intention to sever ties with OpenSea’s SeaPort, a marketplace protocol facilitating NFT trading.