The largest non-fungible token (NFT) exchange, Opensea, has announced major changes to its fee structure and policies in response to a change in the NFT ecosystem. The company detailed that it will reduce fees to zero for a limited time and offer an optional creator earnings model with a minimum of 0.5% for all collections not using the on-chain app.
Opensea cuts fees as it faces stiff competition from rivals like Blur, Looksrare and X2Y2
Open sea, the NFT marketplace, announced Friday that it will reduce fees in response to a major change that began in October 2022. “We are starting to see significant volume and users are migrating to NFT marketplaces that don’t fully tax player earnings.” creators,” Opensea said. “Today, that change has accelerated dramatically despite our best efforts.”
Opensea noted that about 80% of the total ecosystem volume is not paying full creator earnings, and most of the sales volume has moved to a no-fee environment. The NFT market has recently faced competition from the new Blur market, which has captured $1.4 billion in all-time sales volume in a short period. However, Blur’s all-time sales are small compared to Opensea’s. $34.53 billion in all-time sales.
The NFT market too faces competition from the Looksrare and X2Y2 digital collectibles marketplaces. Opensea hopes the new changes strike the right balance of incentives and motivations for all ecosystem participants, including creators, collectors, and energy buyers and sellers. Additionally, the company announced that it is updating its carrier filter to allow sales using NFT marketplaces with the same policies, including Blur. “This is the beginning of a new era for Opensea. We are excited to test this model,” the company said.
What do you think about Opensea’s decision to reduce fees to zero and introduce a new creator earnings model in response to changes in the NFT landscape? Share your thoughts in the comments below.
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