The NFT market Blur has eclipsed OpenSea in daily ETH trading volume as users want a trading environment that works in their favor, anticipating higher returns on their NFT investments.
As rival marketplaces continue to deplete its previously dominating user base, major nonfungible token (NFT) marketplace OpenSea announced a huge restructuring centered on reduced platform costs and higher creator revenues.
According to Nansen statistics, on Feb. 18, NFT marketplace Blur topped OpenSea in daily Ether trading volume as consumers seek a trading arena that works in their favor, anticipating higher returns on their NFT investments.
As a consequence, OpenSea made three big improvements in order to reclaim its migrating clients. The initiatives include a 0% cost for a brief period, the introduction of optional creator revenue, and other operators’ forbearance.
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 confessed that it was losing customers to other “NFT markets that do not completely enforce creator revenues,” and that the new policies are an attempt to reclaim its supremacy in the field, adding:
“Recent occurrences, like as Blur’s move to cut back creator profits (even on filtered collections) and the false choice they’re forcing artists to make between liquidity on Blur and OpenSea, demonstrate that our efforts are failing.”
OpenSea thinks it has safeguarded creator revenues across all collections while maintaining its support for Operator Filter – a feature designed to assist artists in securing cash from resale of their work. Yet, this filter aggressively restricted referrals for markets with similar restrictions.
Blur’s dominance in daily trade volume can be attributable to its new royalty policy, which highlights distinctions in royalty payment alternatives between its platform and OpenSea. It said:
“The present royalty policy of OpenSea forbids collections from earning royalties anywhere. They’ve given a variety of justifications for this (see FAQ), but the final consequence is that authors can only collect royalties on one platform at a time.”
During the royalty war between the two markets, community people emphasized the necessity of industrial competition. Without zero royalty markets, more major companies like OpenSea will gradually raise fee structures, hurting creators and collectors.
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Moreover, OpenSea intends to continue testing the approach in order to determine what works best for the community and the organization. Community members anticipate that if OpenSea successfully recoups its lost clients, it would likely raise its platform costs in the future – a predatory approach common in areas with less competition.
Because of Mohan’s preference for using NFTs and Web3 as revenue streams for producers, YouTube’s selection of new CEO Neal Mohan was viewed as a triumph for the crypto community.
Thank you, @SusanWojcicki. It’s been amazing to work with you over the years. You’ve built YouTube into an extraordinary home for creators and viewers. I’m excited to continue this awesome and important mission. Looking forward to what lies ahead… https://t.co/Rg5jXv1NGb
— Neal Mohan (@nealmohan) February 16, 2023