These Changes Will Help OpenSea Beat Rival Blur in NFT Race
OpenSea, the world’s largest non-fungible token (NFT), marketplace, announced today that it will temporarily remove its 2.5% sales fee and reduce creator royalty protections in order to better adapt to the rapidly changing crypto market. This is in response to growing competition from Blur, a new upstart.
OpenSea brings new changes
OpenSea announced via Twitter on Friday that it will not impose a 0.5% creator royalty charge on NFT transactions for projects without an on-chain enforcement mechanism. Sellers have the option to pay a higher percentage if they wish. A creator royalty is a percentage from the profit earned from the sale or purchase of NFTs. It can range from 5 to 10% of the total amount. This is how NFT collections are expected continue to make revenue after the initial sale of tokens.
Today we are making big changes:1) OpenSea fees – 0% for a short time2) Moving to optional creator incomes (0.5% min. for all collections)3) Marketplaces with identical policies will not be blocked.
— OpenSea (@opensea), February 17, 2023
According to the marketplace’s tweet, sales will be allowed to take place on other platforms that follow the same regulations. This means content producers won’t need to decide whether their earnings come from OpenSea, Blur, or both.
Read more: Check out the Top 10 DeFi Loan Platforms of 2023
The team was quoted in its official announcement as saying:
This is the beginning of a new era in OpenSea,” the marketplace tweeted. “We are excited to test this model, and find the right mix of incentives and motivations that all ecosystem participants can benefit from it.
OpenSea mentioned statistics from on-chain that showed that around 80% of current NFT trading volume is conducted without any form creator royalty. The market gave the impression it was trying to find a solution that would benefit all parties, traders and NFT developers.
Blur’s growing dominance
OpenSea’s move comes after a successful week at Blur, a new NFT space entrant that started operations in October last year. Blur distributed its BLUR tokens on Tuesday to more than 100,000 NFT traders. The company also recommended that NFT project creators use OpenSea to stop trades. Blur Marketplace is free to artists.
According to CoinMarketCap’s crypto market monitor, Blur (BLUR), currently trades at $0.97. This represents a 9.43% increase over the last 24 hours and a huge drop of 82% over seven days.
Also read: Charlie Munger, top CNBC host, slams anti-Bitcoin rhetoric
About the author
The content presented may contain the author’s personal opinion and may not reflect current market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.