OpenSea implements 0% fees to win over NFT user base lost to Blur

February 21, 2023

By Sharan Kaur Phillora

OpenSea has announced three major changes, which include a 0% fee that will last for a limited time, introducing leniency on some operations, and introducing optional creator earnings.

Here’s what we know: 

Nansen data shows that NFT marketplace Blur has surpassed OpenSea in daily Ethereum (ETH) trading volume. Reports show that NFT investors are moving to Blur, anticipating greater returns on their NFT investments.

OpenSea has maintained the top NFT marketplace position for some years, as depicted in our NFT statistics, and the sudden rise of the Blur marketplace has forced OpenSea to actualize some massive restructuring to get it back at the top. The restructuring involves three major changes.

Blur’s success is highly attributed to its new loyalty policy which is quite different from that of OpenSea. Blur recently 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 end result is that creators are limited to earning royalties on only one platform at a time.”

OpenSea has admitted losing NFT investors to other “NFT marketplaces that don’t fully enforce creator earning.” It believes introducing optional creator earnings will bring back a good number of these customers. Blur also recently rolled back its creator earnings, and OpenSea may be trying to do the same.

Explaining its decision to restructure OpenSea tweeted saying, “In October, we started to see meaningful volume and users move to NFT marketplaces that don’t fully enforce creator earnings. Today, that shift has accelerated dramatically despite our best efforts.”

While OpenSea’s creator earnings feature was aimed at helping creators secure the revenue generated from the resale of their work, it blocked recommendations of marketplaces with the same policies.

However, OpenSea has not given a concrete timeline for the 0% fee. It plans to continue testing the fee model to identify what works best for its users.

About the author

Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.

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