Non-fungible token (NFT) marketplace OpenSea has paused its new airdrop reward system due to criticism from users about the mechanics.
On January 28, the mentioned NFT marketplace began providing consumers with access to the beta version of its updated OS2 marketplace. In this case, users were introduced to new mechanisms, including points, which will allow them to be eligible for the upcoming airdrop of the platform’s native token SEA.
Some members of the community expressed their frustration about the experience points system on the platform. In this context, the claims are related to the fact that the mentioned system was not conducive to builders, promoted wash trading, and prioritized earning fees.
As part of a response to OpenSea user feedback, the company’s co-founder and chief executive officer Devin Finzer announced that the platform was taking a step back by pausing XP rewards for listing and bidding. Instead, the mentioned platform will focus on XP shipments, the mechanism of which was introduced on February 14th.
While OpenSea stated that it is building a platform to reimagine everything, its new mechanics were compared to Blur mechanics. NFT collector and influencer Wale described the new mechanics as Blur farming on steroids. Also, in this case, the trading activity of the top XP farmer was characterized as crazy. Whenever a bid is triggered, the XP farmer dumps the collectible on the next farmer.
Wale noted that the mentioned practice allows a trader to farm XP without any capital losses. Also, in this case, the specified mechanism was compared to Blur. At the same time, Wale drew attention to some differences that worsened OpenSea’s version. The NFT collector, in an appropriate context, highlighted that Blur had a 60-minute cool-off period, which changed to a 30-minute cool-off period between a sale and another bid.
At the same time, OpenSea did not have the mentioned period, which facilitated high-frequency trading. It’s also worth noting that Blur had minimal royalties. This meant that some fees would be awarded to creators. OpenSea’s royalties are currently zero. Wale stated that the mentioned practice allows zero-risk XP farming.
One of the community members pointed out that a certain airdrop farmer had already provided $20,000 in fees to OpenSea due to their trading activity. The X user stated that this applies to almost everyone who is at the top of the leaderboards. In the relevant context, it was noted that all these people, in fact, wash trade the same NFTs, dumping on each other’s bids to compete for points.
Meanwhile, another user expressed disappointment with the format of the OpenSea XP campaign. A member of the NFT community stated that the mentioned mechanism does not take into account the interests of builders, founders, artists, or participants.
In response to feedback from the community, OpenSea paused the XP rewards for listing and bidding. Users can now earn more points for buying and holding. NFT community member Langerius stated that the change was unexpected, given the popularity of the platform and the revenue growth. At the same time, the NFT holder stated that the update, made in response to user feedback, is commendable.
As we have reported earlier, SEC Targets NFT Market OpenSea.
