Key Notes

Key Notes:

Community members criticized the XP system for prioritizing fee generation over genuine engagement while disadvantaging ecosystem developers.Longtime users with significant trading volumes feel excluded from rewards due to specific NFT requirements despite their platform loyalty.OpenSea has paused XP rewards for listing and bidding activities, shifting focus to the XP shipments system to promote authentic participation.

OpenSea, which once ruled as the leading marketplace for non-fungible tokens (NFTs), may have found itself as the subject of another public outrage. This comes as it strives to meet user expectations as well as maintain its competitive edge over others in similar business with it.

In perhaps its latest struggle, OpenSea faces huge criticism from users who have expressed dissatisfaction with its airdrop reward system.

On January 28, 2025, OpenSea opened access to the beta version of its upgraded marketplace, OS2. With the launch came a points-based system, which, according to the marketplace, would help users boost their eligibility for an upcoming airdrop of the platform’s native token SEA.

As it turned out, however, the initiative was not well received by community members. Against OpenSea’s expectations, community members thought that the experience points (XP) system does not favor developers within the ecosystem, not to mention that it also encourages ill practices like wash trading.

Furthermore, they argued that the system prioritized fee generation over genuine engagement.

Popular NFT collector and influencer Wale described the new mechanics as “Blur farming on steroids,” calling attention to the dangers of high-frequency trading without the necessary safeguards in place.

Long-time users also feel overlooked, especially those who have contributed significant trading volumes but are excluded from new initiatives like this due to the lack of specific NFTs like Gemesis.

NFT trader TylerD is one of those who expressed displeasure over this arrangement. The trader decried his inability to access the new platform despite having over $10 million in lifetime trading volume.

As the criticism continues to grow, OpenSea has now been forced to place an immediate pause on XP rewards for listing and bidding activities, according to a recent announcement by co-founder and CEO Devin Finzer.

The change means that buying and holding now earn more points for users.

According to Finzer, OpenSea will also now turn its attention to another system it introduced on February 14 — the XP shipments. The more recent mechanism is aimed at addressing user concerns and promoting more authentic participation.

Notably, OpenSea’s attempt to emulate competitors like Blur without initially taking note of user concerns has taken a toll on its market position. However, by taking community feedback and acting in line with them, the platform might just regain its user base, avoiding a further decline in its market share.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He’s a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa’s fancied distractions include soccer or discussing world politics.

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