OpenSea has suspended its airdrop reward system, initially introduced with the OS2 beta, following significant backlash from users.
OpenSea has suspended its airdrop reward system, initially introduced with the OS2 beta, following significant backlash from users. The XP-based reward program faced scrutiny for potentially incentivizing wash trading and placing excessive emphasis on transaction fees.
In a statement, CEO Devin Finzer acknowledged the feedback regarding the XP system, noting that the rewards for listing and bidding would be paused. "We understand that there are a lot of strong emotions towards point systems and that the NFT market is in a unique spot right now," he said. Finzer emphasized that while liquidity rewards are essential for a competitive marketplace, OpenSea is committed to reevaluating the structure of these incentives.
The focus will now shift to XP shipments, which are designed to reward broader participation in the platform. Users who joined the beta early and provided feedback via Discord were among the first to receive these shipments.
The second round of shipments is currently being distributed to users who purchased NFTs on OS2, with additional XP multipliers for those who held NFTs from high-volume projects for over three months.
Finzer stated that more shipments are forthcoming for buyers and holders engaging with OS2. He reiterated the importance of liquidity in operating a successful marketplace and indicated that adjustments to the reward system would be made thoughtfully.
While acknowledging the constructive criticism, Finzer also noted that some negative sentiments expressed on social media seemed driven by ulterior motives to undermine OpenSea.
He affirmed the company's commitment to listening to user feedback while maintaining its strategic direction.
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