Starting with our v4 creator contracts, we give the choice to creators to enforce royalties. This is achieved by using Limit Break's ERC721C/ERC1155C infrastructure, which allows creators to restrict where their tokens are sold.
We believe that the choice to restrict transfers and enforce royalties (as best as possible) is something that should be up to creators, not platforms. This is why we built this and are giving the power to creators.
Any contracts deployed on/after April 29, 2026 have the ability to turn this on when deploying a contract.
How does it work?
This restriction is possible through what's called a "Transfer Validator". This validator is called during the transfer of a token. The validator in turn tells the contract whether or not the marketplace is whitelisted. If the marketplace is not whitelisted, the transaction fails completely.
How does this enforce royalties on OpenSea?
OpenSea and Limit Break worked together to make sure that OpenSea will enforce royalties on ERC721C/ERC1155C contracts. You can read more about it here.
Since this is the only way OpenSea enforces royalties, this is the implementation we had to bring to market. Any other implementation would have resulted in royalties being optional.
Can I turn it off at any time?
Yes. If you opt into enforcing royalties, you are able to turn it off at any time. But beware, you cannot enable enforce royalties once it has been disabled (anti-rug mechanism for collectors).
What measures have you taken to protect collectors?
We've thought a lot about this. Restricting transfers can be scary for collectors, especially if unbounded. We've taken three measures to ensure collectors can't get the rug pulled out from under them.
If the creator ever disables enforced royalties, they can never enforce them again on that collection. It's not fair to sell something with optional royalties and then turn on royalties later. This ensures that creators are upfront when selling on our platform.
The maximum royalty that a creator can set on our contracts is 10%. This is enforced by the contract.
If the creator sets the royalty to 0%, even if "enforced", collectors are not restricted on where they can sell their tokens. If the royalty is above 0% though, trading is restricted to approved marketplaces.
Additionally, our frontend guides creators on best practices and clearly shows when a token/collection has enforced royalties for collectors. We don't employ any dark patterns and want to be clear in what's being sold.
Is OTC still possible?
Yes. The transfer validator can't stop collectors from making over-the-counter (OTC) deals. However, this method captures most volume from trading.
What marketplaces can I trade a restricted contract on?
We want to support the digital art ecosystem broadly. As such, the following marketplaces are supported when restricting transfers.
OpenSea
Gondi
Transient
SuperRare
Verse
Ninfa
Manifold
PND by Ripe0x
Exchange Art
If you run a marketplace and want to be added to the whitelist, please reach out to [email protected]
What were your goals with this feature?
Mainly, we wanted to give creators the option to get royalties from trading on OpenSea. This is the only method where that's possible. Better that this is in the artist's hands than platforms.
How do collectors view enforced royalties?
Some collectors don't mind. Some others are fully against it. It really depends on the collector and how established you are as an artist. An artist just starting out probably doesn't have the credibility for increased trust until they sell more work.
This is a process and we'll see how it plays out, but generally, collectors will be more okay with enforced royalties the more they know the artist.
If you are unsure, it's always safe to stick with optional royalties.
BlockList Enforcement (contracts deployed prior to 4/29/2026)
BlockList Enforcement (contracts deployed prior to 4/29/2026)
Our creator contracts prior to version 4 implemented a BlockList mechanism. This technology applies to any contracts deployed prior to April 29, 2026.
At best, this mechanism makes royalties optional, which is why we migrated to v4 in April 2026.
BlockLists are smart contracts that allow creators to block marketplaces, which in turn blocks collectors from listing your artwork on said marketplaces.
In The Lab, we offer a Transient managed BlockList for creators that block major non-royalty paying marketplaces, except for OpenSea. The blocked marketplaces on this list are:
LooksRare
Blur
SudoSwap
NFTX
Of course, we also offer the ability to turn off BlockList functionality on your contracts at any point, even after deployment via your contract settings.
Questions? Give us a shout at [email protected] 🫡