OpenSea, a leading marketplace for non-fungible tokens (NFTs), has decided to discontinue its XP reward system for listing and airdrops following negative feedback from its user community.
On January 28th, OpenSea launched the beta version of its upgraded platform, OS2, introducing new mechanisms such as earning experience points (XP) to qualify for airdrops of the platform’s native token, SEA.
OpenSea Halts XP Reward System for NFT Listings and Airdrops
However, the community’s response was far from positive, with users criticizing the XP scoring system for promoting wash trading, being unfavorable to developers, and focusing on increasing platform fees.
In response to the feedback, Devin Finzer, co-founder and CEO of OpenSea, announced that the platform would halt XP rewards for listing and bidding as it revisits its policies.
Community Criticism of the XP Mechanism
While OpenSea aimed to completely reinvent its platform, some users compared the new mechanisms to the reward and airdrop systems of its competitor, Blur.
Influencer Wale described the new system as “an extreme version of Blur farming.” He pointed out that the top XP farmer would sell the NFT to the next farmer after each bid, allowing them to accumulate points without incurring financial losses.
Wale also highlighted that, unlike Blur, which has a 30-minute waiting period between sales and new bids, OpenSea has no such restriction, thereby encouraging high-frequency trading. Additionally, Blur has set a minimum royalty to reward creators, whereas OpenSea has set royalties to zero, facilitating risk-free XP farming.
Another user noted that one of the airdrop farmers paid $20,000 in fees to OpenSea. The user added that this situation applies to nearly everyone at the top of the leaderboard. They wrote:
All these people are essentially wash trading with the same NFTs, selling them back and forth to accumulate points.
Encouraging Buying and Holding NFTs
In response to the criticism, OpenSea has decided to discontinue XP rewards for its airdrop. Under the new changes, users will earn points and potentially more airdrops by buying and holding NFTs.
One member of the NFT community, Langerius, described the change as unexpected given OpenSea’s popularity and revenue growth. However, they commended OpenSea for listening to user feedback.
Conclusion
The decision to halt the XP reward system reflects OpenSea’s commitment to addressing community concerns and refining its platform to better serve its users. As the NFT market continues to evolve, platforms like OpenSea must balance innovation with user satisfaction, ensuring that their systems promote fair and sustainable practices. The move to discontinue the XP rewards for listing and airdrops is a step in this direction, aiming to curb practices like wash trading and encourage genuine engagement with NFTs.
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