Non-fungible token (NFT) marketplace OpenSea paused its new airdrop reward system following criticism from users over its mechanics.
On Jan. 28, the NFT marketplace started providing access to the beta version of its upgraded marketplace, OS2. Users were introduced to new mechanics, including points that would contribute to their eligibility for an upcoming airdrop of the platform’s native token SEA.
Some community members expressed frustration over the platform’s experience points (XP) system, saying that it wasn’t conducive to builders, promoted wash trading and prioritized earning fees.
In response to user feedback, OpenSea co-founder and CEO Devin Finzer announced that the platform was taking a step back by pausing XP rewards for listing and bidding. Instead, the NFT platform will focus on XP shipments, a mechanism introduced on Feb. 14.
Source: Devin Finzer
NFT community expresses frustration over XP mechanics
While OpenSea said it is building the platform to “reimagine everything,” its new mechanics have been compared to those of Blur. NFT collector and influencer Wale described the new mechanics as “Blur farming on steroids.”
The NFT collector described the trading activity of the top XP farmer as “crazy.” Whenever a bid is triggered, the XP farmer dumps the collectible on the next farmer.
Wale said this allows the trader to farm XP without any capital losses. Wale compared this mechanism to Blur but noted some differences that made OpenSea’s version worse. The NFT collector pointed out that Blur had a 60-minute cool-off period, which changed to a 30-minute cool-off period between a sale and another bid.
With OpenSea, there was no cool-off period, which promoted high-frequency trading. In addition, Blur had minimum royalties, meaning some fees would be awarded to creators. Because OpenSea royalties are now at zero, Wale said this allows “zero-risk” XP farming.
OpenSea XP leaderboard. Source: OpenSea
Another community member pointed out that one of the airdrop farmers had already provided $20,000 in fees to OpenSea due to their trading activity. The X user said this is the case for almost anyone at the top of the leaderboards. The community member wrote:
“All of these people are basically wash trading the same NFTs, dumping on each other’s bids to compete for points.”
Meanwhile, another user expressed disappointment with OpenSea’s XP campaign format. The NFT community member said the mechanism had “Zero consideration for the builders, founders, artists or participants.”
Related: OpenSea Cayman Islands registration fuels token airdrop rumors
Rewarding the buying and holding of NFTs
In response to feedback from the community, OpenSea paused the XP rewards for listing and bidding. With the change, buying and holding earn more points for users. NFT community member Langerius said the change was unexpected, considering the platform’s popularity and revenue growth. However, the NFT holder said the update in response to user feedback is commendable.
Magazine: The 1 true sign an NFT bull market is back on: Wale, NFT Collector
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