Major non-fungible token (NFT) marketplace OpenSea has announced a massive structuring around lower platform fees and increased creator revenue as competing marketplaces continue to dwindle its once-dominant user base.
On Feb. 18, NFT marketplace Blur surpassed OpenSea in daily Ethereum (ETH) trading volume as users expecting more returns on their NFT investments are looking for a trading arena that works in their favor, Nansen reveals. data.
In a backlash, OpenSea has announced three major changes to win back its migratory customers. The measures include a 0% commission for a limited time, the introduction of additional revenue for creators, and leniency towards other operators.
Today we are making big changes:
1) OpenSea Commission → 0% for a limited time
2) Transition to non-mandatory income from authors (minimum 0.5%) for all collections without network enforcement (old and new).
3) Marketplaces with the same policies will not be blocked by the operator’s filter— Open Sea (@opensea) February 17, 2023
OpenSea has acknowledged it is losing users to other “NFT marketplaces that don’t fully support creators’ earnings,” and the new measures are an attempt to revitalize its dominance in the space by adding:
“Recent events, including Blur’s decision to cut creator revenue (even from filtered collections) and the false choice they are forcing creators to make between Blur’s or OpenSea’s liquidity, prove that our efforts are not working.”
OpenSea believes it has protected authors’ earnings from all collections while reaffirming its support for the operator filter, a feature that was intended to help authors secure their income from the resale of their works. However, this filter preemptively blocked the recommendations of marketplaces that adhered to the same policy.
Blur’s dominance in daily trading volume can be attributed to its new royalty policy, which demonstrates the differences in royalty options between its platform and OpenSea. This read:
“OpenSea’s current royalty policy does not allow collections to receive royalties anywhere. They gave various reasons for this (see the FAQ), but the end result is that creators are limited to receiving royalties on only one platform at a time.”
With the royalties war between the two markets, members of the community have stressed the importance of competition in the industry. If it wasn’t for the zero royalty markets, larger players like OpenSea would end up increasing the fee structure, which would hurt creators and collectors alike.
In addition, OpenSea plans to continue testing the model and determine what works best for the community and organization. Community members speculate that OpenSea is likely to increase its platform fees in the future if it manages to attract its lost customers, a predatory move often seen in less competitive industries.
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YouTube’s appointment of new CEO Neil Mohan was seen as a win for the crypto community, given Mohan’s penchant for using NFTs and Web3 as sources of income for creators.
Thank you, @SusanWojcicki. It has been amazing working with you over the years. You have turned YouTube into an extraordinary home for creators and viewers. I am excited to continue this amazing and important mission. Looking forward to what’s to come… https://t.co/Rg5jXv1NGb
— Neal Mohan (@nealmohan) February 16, 2023
As Cryptooshala reported, Mohan, while serving as YouTube’s chief product officer, outlined tentative plans in February 2022 to integrate features such as Metaverse-based content and NFT-based content tokenization.
Credit : cointelegraph.com
