Feb 19, 2023
OpenSea Cuts Fees & Boosts Creator Earnings to Regain Dominance
The NFT marketplace space is becoming increasingly competitive as new players enter the field and existing marketplaces strive to stay ahead of the competition. OpenSea, one of the major players in the space, recently announced plans to win back its users by introducing a 0% fee for a limited time, optional creator earnings and leniency on other operators.
Data from Nansen shows that on Feb. 18, NFT marketplace Blur surpassed OpenSea in daily Ether (ETH) trading volume. This is likely due to the fact that users are now looking for marketplaces that offer greater returns on their NFT investments. In response, OpenSea has made some major changes to its platform in an effort to reclaim its dominance in the space.
These changes include a 0% fee for a limited time, the introduction of optional creator earnings and leniency on other operators. OpenSea has stated that it defended creator earnings on all collections, but that it was losing users to other marketplaces that don’t fully enforce creator earnings.
The new policies implemented by Blur, such as its royalty policy, have given it an edge over OpenSea. Blur’s policy states that OpenSea’s current royalty policy prevents collections from being able to earn royalties everywhere, limiting creators to earning royalties on only one platform at a time.
The competition in the industry is beneficial for creators and collectors, as it prevents marketplaces from increasing their platform fees. OpenSea plans to continue testing its new model to identify what works best for the community and the organization, and community members speculate that OpenSea will likely increase its fees in the future if it is successful in reclaiming its user base.
The appointment of Neal Mohan as the new CEO of YouTube was seen as a win for the crypto community, as Mohan has expressed interest in using 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 space is growing rapidly, and the competition between marketplaces is creating a better environment for creators and collectors. OpenSea’s new measures are a step in the right direction, and hopefully will help them regain their lost user base. It will be interesting to see how the other NFT marketplaces respond to OpenSea’s changes, and how this will affect the industry as a whole.
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