OpenSea Introduces Zero Transaction Fees, Reduce Royalty Earnings

The world’s largest NFT marketplace, OpenSea, has recently announced significant changes to its operations. In a Twitter post, the firm disclosed changes to its trading fees and royalty system which observers believe will impact users’ activity on the NFT marketplace.
Several Changes
Using a Twitter thread, OpenSea revealed that it would implement a 0% trading fee policy for a limited period. Before this announcement, the leading NFT marketplace charges a 2.5% levy on transactions, significantly forming part of the platform’s revenue.
Along with the announcement, the NFT marketplace added that it plans to adopt “optional creator earnings,” which would see collectors paying 0.5% as a royalty fee for existing and new NFT projects with no on-chain enforcement system. However, the platform stated that collectors could also pay higher fees if they deemed fit.
Meanwhile, the latest move is the main focus of OpenSea’s new changes as creators enjoy a fixed royalty fee ranging from 5-10% of the selling price. This fee is the primary source of the firm’s revenue after its initial launch.
Following the recent changes, OpenSea joins a list of other NFT marketplaces that have shifted their operations focus on favoring traders’ incentives above collectors’. In explaining the reasons for the latest action, OpenSea stated that, at the moment, 80% of the entire ecosystem’s trading volume is not enough to pay creators their total earnings.
OpenSea maintains that it will continue to uphold on-chain enforcement via the operator filter. At the same time, move to a different fee structure to reflect the needs of the current ecosystem.
Additionally, the NFT marketplace explained that its operator filter is designed to allow sales on its platform using the same policy.
Changes Amid Rivalry with Blur
OpenSea has enjoyed widespread adoption in the digital collectible ecosystem for years, and the current changes are necessitated by the emergence of a fast-rising NFT marketplace, Blur. Founded last November, Blur is the new kid in the block and has taken the Web3 landscape by storm, making it the fastest-growing digital collectible project in the blockchain industry.
Despite being in operation for only three months, Blur is the second-largest NFT marketplace in daily transaction volume, based on its current ranking, behind OpenSea. As a result of its rising profile and the daily influx of users to its marketplace, Blur has made the headlines in recent weeks by positioning itself as a significant competitor to OpenSea.
Per Nansen data, Blur briefly recorded a daily trading volume of more than OpenSea last Wednesday, the first time in the industry’s history. The two rivals are reportedly engaged in a war of words, with Blur advising its users to steer clear of OpenSea.
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