OpenSea Lowers Creator Earnings and Offers 0% Trade Fees
Key Points: As rival marketplaces continue to reduce its user base, major non-fungible token (NFT), marketplace OpenSea announced a significant restructuring that included lower platform fees and higher creator earnings.
OpenSea announced three major changes to keep its customers who were migrating. These measures include the introduction of optional creator earnings, a temporary fee of 0%, and leniency to other operators.
OpenSea’s once-dominant userbase is being eroded by competing marketplaces. OpenSea announced three major changes to its platform fees and creator earnings to help customers migrate. OpenSea announced three significant changes to its platform fees to retain customers who were migrating to it. These included a temporary 0% fee and optional creator earnings.
“Our attempts to succeed are not working, as evidenced by recent events such as Blur’s decision that creator earnings will be lowered (even on filtered collections), and the false choice Blur forces creators to make between OS liquidity or Blur liquidity.
OpenSea reiterates its support for Operator Filter. This feature is designed to help artists secure their revenue for the resale or reproduction of their work. OpenSea believes it has successfully defended creator earnings for all collections. This filter disallowed marketplace recommendations with the same policies. However, OpenSea believes that it was able to defend creator earnings on all collections. It stated:
“Collections cannot earn royalties on all platforms because of OS’s current royalty policy.” They have given various reasons (see FAQ), but the end results are that creators can only earn royalties on one platform at a while.
Community members stressed the importance of competition in the sector during the royalty battle between the marketplaces. OpenSea, like other major companies, would eventually raise their prices. This would be detrimental for authors and collectors. OpenSea will continue to evaluate the model to determine what works best for the community and the company. If OpenSea is successful in gathering its lost clients, community members anticipate that it would likely boost its platform fees in the future–a predatory approach frequently observed in markets with less competition.DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comAnnieCoincu NewsTags: marketplace OpenSeaNFTnonfungible tokenOpenSea