Feb 18, 2023
OpenSea Revamps Fees to Reclaim NFT Market Dominance
OpenSea, one of the leading nonfungible token (NFT) marketplaces, recently announced a series of changes to its operations in an effort to win back customers who have been flocking to other marketplaces. The changes include 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 as users anticipate greater returns on their NFT investments. Blur’s new royalty policy is one of the main reasons for its surge in popularity. The policy reads, “OpenSea’s current royalty policy prevents collections from being able to earn royalties everywhere. They have cited various reasons for this (see FAQ), but the end result is that creators are limited to earning royalties on only one platform at a time.”
In response to this, OpenSea announced that it will move to optional creator earnings (0.5% min) for all collections without on-chain enforcement (old & new). The marketplace also stated that it will not block marketplaces with the same policies. OpenSea admits it is losing users to other “NFT marketplaces that don’t fully enforce creator earnings,” and these changes are an attempt to win back its migrating customers.
OpenSea is also hoping to capitalize on the recent appointment of new YouTube CEO Neal Mohan. As Cointelegraph reported, Mohan outlined tentative plans in February 2022 to integrate features such as metaverse-based content experiences and content tokenization via NFTs.
The crypto community is hopeful that Mohan’s plans will help to increase the use of NFTs and Web3 as revenue streams for creators. OpenSea is likely to benefit from this increased interest in NFTs and Web3, and the marketplace is hoping that its new measures will help it to regain its lost user base.
OpenSea plans to continue testing its model and identify what works best for the community and the organization. Community members speculate that OpenSea will probably increase its platform fees in the future if it successfully manages to amass its lost customers.
The NFT industry is still in its infancy, and the competition between marketplaces is bringing out the best in the industry. It is encouraging to see marketplaces competing to offer better returns to creators and collectors, and it remains to be seen who will emerge as the winner in this battle.
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