Feb 19, 2023
OpenSea Slashes Fees, Enhances Creator Earnings
OpenSea, a major non-fungible token (NFT) marketplace, recently announced a restructuring of their fees and creator earnings in an effort to win back customers who have been migrating to competing marketplaces.
Data from Nansen shows that on February 18, the daily Ether (ETH) trading volume of the NFT marketplace Blur surpassed that of OpenSea, as users look for a trading arena that will offer them greater returns on their NFT investments.
In response, OpenSea announced three major changes. These changes include a 0% fee for a limited time, the introduction of optional creator earnings, and leniency on other operators. OpenSea admitted that they had been losing customers to other NFT marketplaces that do not fully enforce creator earnings, and that the new measures were an attempt to revitalize their dominance in the web3 space.
The primary reason for Blur’s success is their new royalty policy, which offers different royalty payment options than OpenSea. OpenSea has defended their creator earnings policy, but have also removed the operator filter, which had been blocking recommendations of marketplaces with similar policies.
The importance of competition in the industry has been highlighted by community members, who believe that if it weren’t for zero royalty marketplaces, more prominent players like OpenSea would eventually increase their fee structure, which would hurt creators and collectors.
OpenSea plans to continue testing their model to identify what works best for the community and the organization. It is speculated that if OpenSea succeeds in regaining its lost customers, they may eventually increase their platform fees.
The appointment of Neal Mohan as YouTube’s new CEO was seen as a win for the crypto community 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 to integrate features such as metaverse-based content experiences and content tokenization via NFTs.
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