Feb 18, 2023
OpenSea Revamps Fees, Introduces Creator Earnings
OpenSea, a major nonfungible token (NFT) marketplace, recently announced a major restructuring in an effort to win back its migrating customers. The changes include a 0% fee for a limited time, introducing optional creator earnings and leniency on other operators.
This restructuring comes after NFT marketplace Blur surpassed OpenSea in daily Ethereum (ETH) trading volume. As users are looking for a trading arena that works in their favor, they have been anticipating greater returns on their NFT investments.
OpenSea admitted that users have been leaving for other “NFT marketplaces that don’t fully enforce creator earnings.” Blur’s daily trading volume supremacy can be attributed to its new royalty policy, which offers different royalty payment options than OpenSea.
OpenSea’s current royalty policy prevents collections from being able to earn royalties everywhere. The new measures are an attempt to revitalize its dominance in the space, as well as to defend creator earnings on all collections. OpenSea also reiterated its support for Operator Filter, a function that helps creators secure their revenue for the resale of their work.
Amid the royalty war between the two marketplaces, community members highlighted the importance of competition in the industry. Without competition, bigger players such as OpenSea would eventually increase fee structure, which would have a negative impact on 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 was also pleased to hear of YouTube’s appointment of new CEO Neal Mohan, who is known to have a keen interest in NFTs and Web3. 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.
With OpenSea’s restructuring, the NFT market is now a more competitive space. Creators and collectors alike can benefit from the increased competition, as it encourages marketplaces to provide better services and fairer fees. OpenSea’s restructuring is a testament to this, and its success will be determined by the community’s response.
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