Feb 19, 2023

OpenSea Cuts Fees, Boosts Creator Earnings to Regain Dominance

OpenSea, a major nonfungible token (NFT) marketplace, recently announced changes to its platform fees and creator earnings in an effort to win back customers who have migrated to competing marketplaces. Data from Nansen showed that on Feb. 18, NFT marketplace Blur had surpassed OpenSea in daily Ether (ETH) trading volume.

The changes announced by OpenSea include a 0% fee for a limited time, introducing optional creator earnings and leniency on other operators. OpenSea acknowledged that other marketplaces had not been enforcing creator earnings, and the new measures are an attempt to maintain its dominance in the space.

The changes come in response to Blur’s new royalty policy, which allowed users to earn greater returns on their NFT investments. Blur’s policy stated that OpenSea’s current royalty policy “prevents collections from being able to earn royalties everywhere” and that creators were limited to earning royalties on only one platform at a time.

The community has noted the importance of competition in the industry, as without it, more prominent players like OpenSea would eventually increase their 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.

The recent appointment of Neal Mohan as YouTube’s new CEO was seen as a win for the crypto community, as Mohan had previously outlined plans to integrate features such as metaverse-based content experiences and content tokenization via NFTs.

Ultimately, OpenSea’s changes will have a significant impact on the web3 space, and it remains to be seen if the marketplace will be able to recapture its lost user base. The success of OpenSea’s new measures could lead to an increase in NFT promotion, crypto adoption, and NFT marketing, as well as the emergence of NFT marketing agencies and web3 agencies that specialize in selling NFTs. Twitter NFT marketing could also be on the rise, as more users become aware of the potential of NFTs.

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