Major non-fungible token (NFT) marketplace OpenSea has announced a massive structuring around lowering platform fees and increasing creator profits as competing marketplaces continue to erode their base of users, once dominant.
According to Nansen data, on February 18, the NFT Blur market surpassed OpenSea in daily Ether (ETH) trading volume, as users expecting higher returns from their NFT investments seek a market that favors them. .
As a reaction measure, OpenSea has announced three major changes to win back customers who have migrated. The measures include a 0% commission for a limited time, the introduction of optional earnings for creators, and leniency to other traders.
We’re making some big changes today:
1) OpenSea fee → 0% for a limited time
2) Moving to optional creator earnings (0.5% min) for all collections without on-chain enforcement (old & new)
3) Marketplaces with the same policies will not be blocked by the operator filter—OpenSea (@opensea) February 17, 2023
OpenSea admitted to losing users to other “NFT marketplaces that do not fully enforce creator earnings,” and the new measures are an attempt to reinvigorate its dominance in the space, adding:
“Recent events – including Blur’s decision to roll back creator earnings (even on leaked collections) and the false choice they are forcing creators to make between liquidity on Blur or OpenSea – demonstrate that our efforts are not working.”
OpenSea believes it has defended creator earnings across all collections, while reiterating its support for Operator Filter, a feature intended to help creators secure revenue from the resale of their work. However, this filter proactively blocked recommendations from marketplaces that applied the same policies.
Blur’s supremacy in daily transaction volume can be attributed to its new royalty policy, which shows the differences in royalty payment options between its platform and OpenSea. The text is as follows:
“OpenSea’s current royalty policy prevents payments from being made everywhere. They have given various reasons for this (see FAQ), but the end result is that creators are limited to earning royalties on only one platform at the same time. time”.
Amid the rights war between the two markets, community members highlighted the importance of competition in the industry. If there were no zero-fee markets, bigger players like OpenSea would end up increasing the fee structure, hurting creators and collectors alike.
Additionally, OpenSea plans to further test the model and identify what works best for the community and organization. Community members speculate that OpenSea will raise fees for its platform in the future if it manages to amass lost customers, a predatory move often seen in industries with less competition.
The appointment of the new YouTube CEO, Neal Mohan, was perceived as a victory for the cryptocurrency community, considering Mohan’s penchant for using NFTs and Web3 as sources of revenue for creators.
Thank you, @SusanWojcicki. It’s been amazing to work with you over the years. You’ve built YouTube into an extraordinary home for creators and viewers. I’m excited to continue this awesome and important mission. Looking forward to what lies ahead… https://t.co/Rg5jXv1NGb
— Neal Mohan (@nealmohan) February 16, 2023
As Cointelegraph reported, while serving as YouTube’s head of product, Mohan outlined tentative plans in February 2022 to integrate features such as metaverse-based content experiences and content tokenization via NFTs.
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