Major non-fungible token (NFT) marketplace OpenSea has announced a massive structuring around lower platform fees and higher creator profits as competing marketplaces continue to drain its base. users that was once dominant.
According to Nansen data, on February 18, the NFT Blur market surpassed OpenSea in daily Ether (ETH) trading volume as users, anticipating higher returns on their NFT investments, seek a trading scenario that work in your favor.
As a reaction measure, OpenSea announced three important changes to win back its migrant customers. The measures include a 0% fee for a limited time, the introduction of optional earnings for creators, and leniency for other operators.
We are making some important changes today:
1) OpenSea Fee → 0% for a limited time
2) Move to optional creator earnings (0.5% minimum) for all collections without chain compliance (old and new)
3) Markets with the same policies will not be blocked by the operator filter—OpenSea (@opensea) February 17, 2023
OpenSea admitted to losing users to other “NFT marketplaces that don’t fully enforce creator earnings,” and the new measures are an attempt to reinvigorate its dominance in the space, adding:
“Recent events, including Blur’s decision to cut creator earnings (even on leaked collections) and the false choice they are forcing creators to make between liquidity on Blur or OpenSea, show that our attempts are not working. ”.
OpenSea believes it has championed creator earnings across collections while reiterating its support for Operator Filter, a feature intended to help creators secure revenue from the resale of their work. However, this filter proactively blocked recommendations from marketplaces that had the same policies.
Blur’s daily transaction volume supremacy can be attributed to its new royalty policy which shows the differences in royalty payment options between its platform and OpenSea. He said:
“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 bottom line is that creators are limited to earning royalties on only one platform at a time.”
Amid the royalty war between the two markets, community members highlighted the importance of competition in the industry. If it weren’t for zero-royalty markets, bigger players like OpenSea would eventually increase the fee structure, hurting creators and collectors.
Additionally, OpenSea plans to continue testing the model and identify what works best for the community and organization. Community members speculate that OpenSea would likely increase fees for its platform in the future if it successfully racks up its lost customers, a predatory move often seen in industries with less competition.
Related: eBay NFT platform KnownOrigin launches smart contract for creators
The appointment of new YouTube CEO Neal Mohan was perceived as a victory for the crypto community, considering Mohan’s penchant for using NFTs and Web3 as sources of revenue for creators.
Thank you, @SusanWojcicki. It has been amazing working with you over the years. You’ve made YouTube an extraordinary home for creators and viewers. I am excited to continue this incredible and important mission. Waiting for what’s coming… https://t.co/Rg5jXv1NGb
— Neal Mohan (@nealmohan) February 16, 2023
As Cointelegraph reported, while serving as YouTube’s chief product officer, Mohan outlined tentative plans in February 2022 to integrate features like metaverse-based content experiences and content tokenization via NFTs.
