OpenSea Ends Airdrops and Pulls Back from the XP Rewards System

OpenSea, the largest NFT marketplace in the world, announced the suspension of its new XP rewards system. This was introduced on January 28, but quickly

World’s largest NFT marketplace OpenSea has announced that it will be pausing its new XP rewards system. Introduced on Jan. 28, the system quickly drew flak from the community, prompting the decision. It comes in a period where the platform is attempting to reinvent itself with the recent launch of its SEA token.

OpenSea pivots, pulls the plug on airdropをめぐる動き

On Jan. 28, 2025, OpenSea unveiled the beta version of its new OS2 platform, which was accompanied by an experience points (XP) system. The points were set to qualify users for a future airdrop of the SEA token, the native crypto of OpenSea that was announced on Feb. 13. However, the implementation of the system quickly stirred controversy within the community.

The criticisms particularly focused on the XP point allocation mechanisms, which favored intensive trading practices at the expense of genuine creators and collectors.

Influential users, like collector Wale, notably pointed out that the system encouraged “wash trading,” a practice involving artificial transactions to inflate volumes.

Even more seriously, the absence of a reflection period between transactions, unlike its competitor Blur which imposes a 30-minute delay, allowed traders to multiply high-frequency transactions without any real financial risk.

The situation peaked when some users began to spend up to $20,000 in transaction fees to climb the XP rankings. This points race created an artificial environment where the same NFTs were looped between a small group of traders, solely for the purpose of accumulating points.

These speculative behaviors were significantly deviating from the original spirit of the project, which aimed to reward the loyalty of historical users of the platform.

A swift reaction to community feedback

In response to these criticisms, Devin Finzer, CEO and co-founder of OpenSea, decided to suspend the XP rewards linked to listings and auctions. The platform is now focusing on “XP shipments,” a new mechanism introduced on Feb. 14 that prioritizes the purchase and holding of NFTs rather than frantic trading.

This decision aligns with a broader move to return to basics for OpenSea. At the launch of the SEA token, Finzer had already recognized that the platform had become “too corporate” and had strayed from its Web3 roots. The suspension of the controversial rewards system demonstrates OpenSea’s willingness to listen to its community and prioritize a more balanced development of the NFT market.

This realignment comes in a context marked by as many opportunities as challenges for cryptocurrencies, particularly in the United States, as indicated by the keys to the crypto market. The platform, which has generated nearly a billion dollars in revenue since its establishment in 2017, seeks to consolidate its position as a leader while preserving the interests of its historical community.

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Passionate about Bitcoin and blockchain journalism, I like to explore the latest crypto trends and share my findings with the community. My goal is to spread awareness about decentralized finance and empower individuals with the knowledge to navigate the crypto world with confidence.