Feb 19, 2023
OpenSea Revamps Fees, Boosts Creator Earnings
The NFT marketplace OpenSea is restructuring its platform fees and creator earnings in an effort to win back its migrating users. Data from Nansen shows that on Feb. 18, NFT marketplace Blur surpassed OpenSea in daily Ether (ETH) trading volume as users look for a trading arena that works in their favor.
In response, OpenSea announced three major changes to its platform. These include a 0% fee for a limited time, introducing optional creator earnings and leniency on other operators. OpenSea admitted that users have been drawn to other “NFT marketplaces that don’t fully enforce creator earnings,” and the new measures are an attempt to revitalize its dominance in the space.
The shift in user preference can be attributed to Blur’s 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, while Blur is allowing creators to earn royalties on multiple platforms.
Community members have highlighted the importance of competition in the industry, noting that if it weren’t for zero royalty marketplaces, more prominent players like OpenSea would 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 would probably increase its platform fees in the future if it successfully manages to amass its lost customers.
The crypto community is also taking note of YouTube’s appointment of new CEO Neal Mohan, who is perceived as a win for the crypto space due to his inclination to use NFTs and Web3 as revenue streams for creators. While serving as YouTube’s chief product officer, Mohan outlined tentative plans in February 2022 to integrate features such as metaverse-based content experiences and content tokenization via NFTs.
NFTs are becoming increasingly popular due to their unique characteristics and potential to revolutionize the digital economy. The current restructuring of OpenSea and the emergence of other NFT marketplaces is a sign of the growing demand for NFTs and the potential of the NFT space.
As more marketplaces enter the space and competition intensifies, creators and collectors will benefit from lower fees and more options to promote and sell their NFTs. It is likely that NFT marketing agencies and web3 agencies will emerge to help creators and collectors navigate the space and maximize their NFT earnings.
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