Feb 19, 2023
OpenSea Unveils Plan to Reclaim NFT Dominance
In a move to reclaim its once dominant user base, major nonfungible token (NFT) marketplace OpenSea announced a major restructuring of its platform fees and creator earnings. The announcement was made in response to data from Nansen, which revealed that on Feb. 18, NFT marketplace Blur surpassed OpenSea in daily Ether (ETH) trading volume.
The restructuring measures introduced by OpenSea include a 0% fee for a limited time, introducing optional creator earnings and leniency on other operators. OpenSea has admitted to losing users 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 surge in Blur’s daily trading volume can be attributed to its new royalty policy showcasing differences in royalty payment options between its platform and OpenSea. OpenSea’s current royalty policy prevents collections from being able to earn royalties everywhere, which limits creators to earning royalties on only one platform at a time.
However, community members have highlighted the importance of competition in the industry. Without 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 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 — a predatory move often noticed in industries with less competition.
The crypto community has also welcomed the appointment of YouTube’s new CEO Neal Mohan, who is known to be inclined 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.
OpenSea’s restructuring of its platform fees and creator earnings is an attempt to stay competitive in the NFT marketplace space. As more and more marketplaces are offering more favorable terms for creators and collectors, OpenSea is hoping to win back its migrating customers with its new measures.
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