OpenSea Halts Airdrop Rewards Amidst User Outcry Over XP System

OpenSea, a leading non-fungible token (NFT) marketplace, has temporarily halted its new airdrop reward system following user backlash over its mechanics. The platform introduced the beta version of its upgraded marketplace, OS2, on Jan. 28, which included a points system contributing to eligibility for an upcoming airdrop of the platform's native token, SEA.

The new experience points (XP) system sparked criticism from users, who argued that it was not 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 would pause XP rewards for listing and bidding, focusing instead on XP shipments, a mechanism introduced on Feb. 14.

The NFT community expressed frustration over the new mechanics, comparing them to Blur. NFT collector and influencer Wale described the trading activity of the top XP farmer as "crazy," with traders dumping collectibles on the next farmer to farm XP without capital losses. Wale noted that OpenSea's version of the mechanism was worse than Blur's, as it lacked a cool-off period and had zero royalties, allowing for "zero-risk" XP farming.

Another community member pointed out that one of the airdrop farmers had already provided $20,000 in fees to OpenSea due to their trading activity. The user said this was the case for almost anyone at the top of the leaderboards, with users essentially wash trading the same NFTs to compete for points. Meanwhile, another user expressed disappointment with OpenSea's XP campaign format, stating that it had "Zero consideration for the builders, founders, artists or participants."

In response to user feedback, OpenSea paused the XP rewards for listing and bidding, with buying and holding earning more points for users. NFT community member Langerius said the change was unexpected, considering the platform's popularity and revenue growth. However, the NFT holder commended the update as a commendable response to user feedback.