Major nonfungible token (NFT) marketplace OpenSea announced a massive structuring around lower platform fees and greater creator earnings as competing marketplaces continue to drain away its once dominant user base.
According to data from Nansen, on Feb. 18, NFT marketplace Blur surpassed OpenSea in daily Ether (ETH) trading volume as users — anticipating greater returns on their NFT investments — are looking for a trading arena that works in their favor.
Daily trading volume of major NFT marketplaces. Source: Nansen
As a reactionary measure, OpenSea announced three major changes to win back its migrating customers. The measures include a 0% fee for a limited time, introducing optional creator earnings and leniency on other operators.
We’re making some big changes today:
1) OpenSea fee → 0% for a limited time
2) Moving to optional creator earnings (0.5% min) for all collections without on-chain enforcement (old & new)
3) Marketplaces with the same policies will not be blocked by the operator filter
— OpenSea (@opensea) February 17, 2023
OpenSea admitted 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, adding:
“Recent events – including Blur’s decision to roll back creator earnings (even on filtered collections) and the false choice they’re forcing creators to make between liquidity on Blur or OpenSea – prove that our attempts are not working.”
OpenSea believes that it defended creator earnings on all collections while reiterating its support for Operator Filter — a function aimed at helping creators secure their revenue for the resale of their work. However, this filter proactively blocked recommendations of marketplaces that sported the same policies.
OpenSea’s plan of action to counter falling market dominance. Source: OpenSea (via Twitter)
Blur’s daily trading volume supremacy can be attributed to its new royalty policy showcasing differences in royalty payment options…
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