Feb 19, 2023
OpenSea Countering Falling Dominance with 0% Fees, Creator Earnings
OpenSea, the major nonfungible token (NFT) marketplace, has announced a restructuring of platform fees and increased creator earnings in response to the rising popularity of competing marketplaces. On February 18, NFT marketplace Blur surpassed OpenSea in daily Ether (ETH) trading volume, as users seek greater returns on their NFT investments.
OpenSea’s response includes a 0% fee for a limited time, the introduction of optional creator earnings and leniency for other operators. OpenSea admitted to losing users to other “NFT marketplaces that don’t fully enforce creator earnings”, and the new measures are an attempt to win back its migrating customers.
The platform has defended its support for Operator Filter, a function aimed at helping creators secure their revenue for the resale of their work. However, this filter proactively blocked recommendations of marketplaces with the same policies.
Blur’s daily trading volume supremacy can be attributed to its new royalty policy, which showcases differences in royalty payment options between its platform and OpenSea. OpenSea’s current royalty policy prevents collections from being able to earn royalties everywhere, and creators are limited to earning royalties on only one platform at a time.
Community members have highlighted the importance of competition in the industry. Without zero royalty marketplaces, more prominent players like OpenSea may eventually increase fee structure, which would hurt creators and collectors.
OpenSea plans to continue testing the model and identify what works best for the community and the organization. Community members speculate that OpenSea may increase its platform fees in the future if it successfully manages to amass its lost customers.
The appointment of Neal Mohan as YouTube’s new CEO was seen as a win for the crypto community, as Mohan has shown an inclination to use NFTs and Web3 as revenue streams for creators. While serving as YouTube’s chief product officer, Mohan outlined plans to integrate features such as metaverse-based content experiences and content tokenization via NFTs.
The NFT market is rapidly evolving, and it is clear that OpenSea is making an effort to stay competitive and provide a user-friendly platform for creators and collectors alike. With the introduction of lower platform fees and greater creator earnings, OpenSea is positioning itself as the go-to platform for NFT promotion, marketing, and selling. The platform is also looking to capitalize on the growing trend of NFT marketing and Twitter NFT marketing, as well as providing web3 agency services.
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