“We Won’t Be Bullied”— Devin Finzer Speaks Out on OpenSea Rewards
OpenSea’s XP rewards program, supposed to be part of SEA token’s airdrop, is on pause. Ahead of the launch of its own SEA token, the popular NFT platform OpenSea has been required to make some airdrop policy changes.
The marketplace confirmed its native token at the end of 2024. SEA is expected to launch soon, though the launch details are uncertain at the moment. As part of the token airdrop, OpenSea introduced the XP rewards program, which faced some criticism from the community.
The issue is that to receive rewards, users need to be active on OS2 (the platform’s latest version). According to some users, this may cause unhealthy competition, leaving real contributors and NFT fans behind.
In an open letter, @cooldown_eth on X suggested stripping away bidding points because the constant competition between farmers and real users is exhausting and can be detrimental to the ecosystem.
Related: What is farming in the DeFi ecosystem?
OpenSea co-founder and CEO Devin Finzer heard the feedback. On February 18, he announced that part of the rewards system was put on pause.
We've heard the feedback on the current XP system, and we're putting a pause on XP given directly for listing and bidding,
– Finzer said in an X post.
Responding to users’ concerns over farming activities, Finzer acknowledged that liquidity rewards can stir strong emotions, but the team doesn’t think they are inherently bad. For now, OpenSea has ended that part of the program to find the best solution.
Finzer announced that the platform will now focus on XP rewards designed to encourage broad participation, such as buying and holding.
He clarified that the first round of shipments went to users who joined OS2’s beta early and provided feedback on Discord.
The second round of shipments is going to users who purchased an NFT on OS2. Those holding an NFT from top-volume projects for more than three months may earn more points.
Finzer stated they will continue to reward NFT buyers and holders.
So, What About Farmers?
By pausing liquidity rewards, Finzer and OpenSea demonstrated that community feedback is important to them. However, he also emphasized the importance of liquidity incentives.
I want to be clear about our thinking here: we're operating a business in a competitive space, and liquidity is fundamental to any marketplace.
– he mentioned.
So, OpenSea will consider adjustments and enhancements related to liquidity rewards, but they will likely return in some form.
Regarding the community's reaction, Finzer expressed appreciation for the feedback and stated his willingness to collaborate with those offering helpful ideas. He also had a message for the critics.
Some of the vitriol I saw on X this weekend appeared to be primarily motivated by extraction/attempts to bring OS down. We're listening closely as we build, but we won’t be bullied.
The OpenSea CEO concluded by expressing his openness to working with others to build the future constructively.
Previously, Finzer announced that a lot of things are changing for OpenSea. On OS2, users can now trade other tokens along with NFTs and use creator tools.
Devin Finzer founded OpenSea in December 2017. According to DappRadar, OpenSea is currently the leading NFT marketplace by trading volume, which is over $4.7 million at the moment.
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