Feb 19, 2023

OpenSea Cuts Fees, Boosts Creator Earnings to Reclaim Market Dominance

OpenSea, the leading non-fungible token (NFT) marketplace, has announced major changes to its platform in response to competing marketplaces draining away its user base.

Data from Nansen indicates that on Feb. 18, NFT marketplace Blur surpassed OpenSea in daily Ether (ETH) trading volume as users seek greater returns on their investments. OpenSea has responded with a 0% fee for a limited time, optional creator earnings, and leniency on other operators.

OpenSea CEO Devin Finzer said in a statement: “Recent events – including Blur’s decision to roll back creator earnings (even on filtered collections) and the false choice they’re forcing creators to make between liquidity on Blur or OpenSea – prove that our attempts are not working.”

The changes are an attempt to win back customers who have been attracted to other “NFT marketplaces that don’t fully enforce creator earnings”. OpenSea has also removed the operator filter, which was designed to help creators secure their revenue for the resale of their work, but which was proactively blocking recommendations of marketplaces that had the same policies.

Blur’s success can be attributed to its new royalty policy, which allows creators to earn royalties on multiple platforms. Community members pointed out that without zero royalty marketplaces, more prominent players like OpenSea would eventually increase fee structure, which would hurt creators and collectors.

OpenSea is currently testing the model to identify what works best for the community and the organization. It is speculated that OpenSea may increase its platform fees in the future if it successfully manages to amass its lost customers.

The news of OpenSea’s changes comes as YouTube appoints new CEO Neal Mohan, who is seen as a win for the crypto community. While serving as YouTube’s chief product officer, Mohan outlined tentative plans to integrate features such as metaverse-based content experiences and content tokenization via NFTs.

The changes at OpenSea, combined with Mohan’s plans for YouTube, demonstrate the potential of NFTs and Web3 technology to revolutionize the digital content industry. With the right marketing, NFTs and Web3 could become a powerful tool for creators to monetize their work and engage with their fans.

NFT marketing agencies, such as NFT Agency, are already helping creators to promote their work and generate revenue by selling NFTs. NFT Agency provides services such as Twitter NFT marketing, NFT promotion, and Web3 agency services.

As the industry continues to evolve, it is clear that NFTs and Web3 will be an increasingly important part of the digital content space. With the right strategies in place, creators can take advantage of these new technologies to monetize their work and build deeper relationships with their fans.

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