OpenSea to Modify Points Program Amid Community Backlash

OpenSea has swiftly modified its points program for OpenSea 2.0 (OS2) following community backlash, just five days after its beta launch. CEO Devin Finzer acknowledged concerns about incentivized listing and bidding, pausing XP rewards for these activities due to fears of market manipulation reminiscent of Blur’s controversial incentive model.

The NFT market has reacted similarly to Blur’s impact, with collections like Pudgy Penguins, Azuki, and Bored Ape Yacht Club experiencing price drops of 4% to 16%, despite weekly volume surges of up to 188%. Doodles, in particular, saw an extreme 1,140% volume spike, partially driven by farming bots and its upcoming token release.

Instead of listing and bidding XP, OpenSea will now focus its rewards on XP shipments, targeting broader participation through activities like buying and holding NFTs. Early OS2 users who provided feedback via Discord and purchased NFTs have already received XP rewards, with multipliers based on previous wallet behavior.

OpenSea’s incentive period has dramatically increased platform activity, processing $26 million in volume on Feb 17—up from $5.8 million on Feb 12, just before XP farming began. As the marketplace refines its approach, it remains to be seen whether OS2 can balance engagement without destabilizing NFT prices.

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