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…
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