Basri Caneri 
Popular NFT platform OpenSea has announced that it has halted XP earning for listing and bidding trades following intense criticism of the XP reward system it launched on its new platform. Users reacted by stating that the system incentivizes wash trading, does not benefit creators, and prioritizes the platform to only profit from transaction fees.
OpenSea’s New OS2 Platform Receives Criticism
On January 28th, OpenSea launched a beta version of its new platform, OS2, which offered XP rewards to its users to qualify for the SEA token airdrop. However, community members argued that this system harmed the NFT ecosystem.
In particular, traders who earn high volumes of XP are said to earn points by selling and buying NFTs to each other, offering a zero-risk model. Renowned NFT collector and influencer Wale described OpenSea’s XP system as an even worse version than the rewards system of its rival Blur, which is making waves in the NFT world.
Community Complains of “Wash Trading” and Rewards Not Reaching Creators
Stating that traders earning Top XP are only optimizing the rewards offered by the system without suffering any losses, community members said that artists do not receive any share due to OpenSea’s zero royalty policy.
Emphasizing that Blur maintains minimum royalties while implementing a similar system, but OpenSea has completely cut it to zero, users stated that this is a big blow to NFT artists and projects.
Another user stated that some traders pay transaction fees of up to $20,000 just to earn airdrops, suggesting that the system is completely wash trading-oriented.
OpenSea Backtracks: New XP System Coming
After much criticism, OpenSea co-founder and CEO Devin Finzer announced the discontinuation of XP rewards.
While the new system will award more points for NFT purchases and retention, the community has welcomed the change as a positive step.
Langerius from the NFT community said that it was surprising that OpenSea would make such a change despite its previous earnings and popularity, but that it is an appreciated move to listen to user feedback.
This development is seen as an important sign that reward systems and airdrop mechanisms in the NFT market could be reshaped.
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