After criticizing the system for being exploited for high-frequency trading, Opensea announced a suspension of XP rewards for NFTs to bid and list.
The XP system introduced as part of the OS2 update is designed to inspire market activity ahead of the upcoming $Sea Token Airdrop. However, traders quickly found ways to accumulate XP through fast, low-cost trading.
In community members argued that Opensea’s approach encourages speculation about long-term participation. In response, Opensea announced a pause in bidding and listing on XP rewards while reevaluating its approach.
Source: Devin Finzer (X)What is Opensea’s response?
In a statement by Opensea CEO Devin Finzer, the XP rewards used for tendering and listing will be suspended while reevaluating its incentive structure. The company acknowledges these concerns but insists that liquidity incentives remain an important part of the competitive market.
“We’ve heard feedback from the current XP system, and we’re stopping directly on XP to list and bid on it.” Now, the platform will focus its rewards program on XP cargo, which is designed to recognize a wider range of Participate, such as buying and holding NFTs.
The second round of goods has been distributed, prioritizing users who purchase NFTs on OS2 and providing additional XP multiplier to those who hold large-capacity NFT projects for more than three months. Opensea notes that future goods will continue to reward buyers and holders, although it does not specify the frequency of allocation of these rewards.
Opensea also objected to some of the criticisms received, pointing out that some of the attacks appear to be driven by external efforts to damage its reputation. “We are listening carefully when we are building, but we are not bullied,” Finzer said.
Source: Betty (x)How does the community react to change?
The decision sparked a different response, with some industry figures welcomed Opensea’s willingness to adjust, while others expressed doubts about the direction of their rewards program.
Betty, CEO and co-founder of Deadfellaz, supported the move, but stressed that the frustration in the community stems from the hope that Opensea will listen and improve, noting that Opensea “still bear a lot of weight in the industry.”
Others question whether long-term Opensea users and early-stage market contributors will receive adequate recognition. ArtxCode co-founder Toni Marinara suggested that if they want to “dissuade agriculture and reward actual loyal Opensea users”, the platform should prioritize activities before the $SEA announcement. Some users are also frustrated with the distribution of XP shipments, believing that new users are prioritizing. One member questioned why “those who paid thousands of platform fees” over the years seemed to be ignored, rather than beta testers who recently joined the platform.
Although XP’s bidding and listing rewards have been temporarily shelved, Opensea has not ruled out future liquidity incentives. With the release of $Sea Doken, Opensea will need to refine its reward system while maintaining user participation.
As these adjustments continue, it remains to be seen whether Opensea balances between incentivizing market activity and ensuring long-term stability of the NFT space.
