TL;DR
- OpenSea paused the XP rewards for listing and bidding on NFTs after receiving criticism about the points system it introduced.
- The platform will continue to reward users for buying and holding NFTs, aiming for more genuine and sustainable participation.
- Despite the backlash, OpenSea states that liquidity rewards are essential for the marketplace and will keep adjusting its system to improve the user experience.
Recently, OpenSea decided to pause the XP rewards for listing and bidding on NFTs on its new OS2 platform after receiving significant criticism from the community. The company had introduced an XP system where users earned points by interacting on the marketplace, making them eligible for the upcoming airdrop of the native SEA token. However, this system faced heavy scrutiny, particularly from community builders who pointed out that it encouraged “wash trading” and did not promote genuine participation or long-term engagement with the platform, which are critical for its growth.
Criticism of the XP System: A System in Trouble
Despite OpenSea’s good intentions in introducing an innovative mechanic to reward participation, the new XP system was met with distrust by many in the NFT community. Critics compared it to Blur’s system, describing OpenSea’s new version as “farming on steroids.” Users like influencer Wale pointed out that the system allowed traders to “farm XP” with zero risk, thanks to the lack of a cooling-off period between transactions. In contrast, Blur had implemented a 30-minute wait time between a sale and the next bid, which helped limit manipulation.
OpenSea Responds: Focusing on Buying and Holding NFTs
In response to the complaints, OpenSea paused the XP rewards for listing and bidding and will now reward users who buy and hold NFTs. This decision has been seen as an attempt to foster more genuine participation on the platform, benefiting both buyers and creators. Additionally, OpenSea will continue rewarding those who participated from the beginning, such as users who joined the beta and provided feedback.
The OpenSea team also mentioned that liquidity rewards are vital for the platform’s competitiveness, especially in the current NFT market, which remains unique and ever-changing. However, OpenSea made it clear that they are willing to adjust the liquidity rewards system to ensure a more balanced experience, while still recognizing the need to incentivize liquidity in such a competitive market.
Finally, OpenSea reaffirmed its commitment to working with the community to fine-tune the system and prevent “extraction” practices that some users are attempting to manipulate the system in their favor.
