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OpenSea implements 0% fees to win over NFT userbase lost to Blur

Blur, an NFT marketplace, has eclipsed OpenSea in daily ETH trading volume as customers seek a trading environment that works in their favor, anticipating higher returns on their NFT investments.

As competing marketplaces continue to deplete its previously dominating user base, major nonfungible token (NFT) marketplace OpenSea announced a huge restructuring centered on lower platform fees and higher creator earnings.

According to Nansen data, on February 18, NFT marketplace Blur topped OpenSea in daily Ethereum trading volume, as consumers looking for 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 time, the introduction of optional creator revenue, and other operators’ leniency.

OpenSea confessed that it was losing users to other “NFT marketplaces that do not completely enforce creator earnings,” and that the new policies are an attempt to reclaim its supremacy 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 thinks it has defended creator revenues across all collections while reiterating its support for Operator Filter – a feature designed to assist creators in securing cash from the selling of their work. However, this filter actively blocked recommendations for marketplaces with similar policies.

Blur’s dominance in daily trading volume can be attributable to its new royalty policy, which highlights distinctions in royalty payment alternatives between its platform and OpenSea. It 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.”

During the royalty war between the two markets, community people emphasized the necessity of industrial competition. If it weren’t for zero-revenue marketplaces, larger companies like OpenSea would inevitably increase price structures, which would harm producers and collectors.

Furthermore, 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.

According to Cointelegraph, Mohan revealed tentative plans in February 2022, while serving as YouTube’s chief product officer, to integrate features such as Metaverse-based content experiences and content tokenization via NFTs.

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