By Nermeen Nabil Khear 
Non-fungible token (NFT) giant OpenSea has halted its newly introduced airdrop reward system following widespread criticism from its user base.
The move comes after concerns were raised regarding the platform’s experience points (XP) system, which users claimed encouraged wash trading, prioritized fee generation, and failed to support builders within the ecosystem.
XP System Paused
OpenSea launched the beta version of its upgraded marketplace, OS2, on January 28, introducing a points-based mechanism to determine user eligibility for an upcoming airdrop of its native token, SEA.
However, community backlash quickly followed. Many argued that the XP system was flawed and did not align with the long-term sustainability of the NFT space.
In response, OpenSea co-founder and CEO Devin Finzer announced that the platform would be pausing XP rewards for listing and bidding activities. Acknowledging the strong sentiments surrounding point-based reward systems, Finzer stated that while liquidity incentives remain important for a competitive marketplace, OpenSea is taking a step back to reevaluate the best approach.
“We’ve heard the feedback on the current XP system, and we’re putting a pause on XP given directly for listing and bidding. While we don’t think liquidity rewards are inherently bad, we understand that there are a lot of strong emotions towards point systems, and that the NFT market as a whole is in a unique spot right now. we’re building OS to support this space long term, so we’re pausing this part of the rewards program while we think through the best path forward.”
Instead of continuing with the criticized XP system, OpenSea will focus on “XP shipments,” a newly introduced mechanism that aims to reward broader participation in OS2. Users who engaged with the beta version early and provided feedback via Discord have already received the first round of shipments.
A second round is now being distributed to users who have purchased NFTs on OS2, with additional XP multipliers for those holding assets from top-volume projects for over three months.
OpenSea Data Breach
The latest controversy comes a month after a report revealed that 7 million email addresses were leaked during OpenSea’s 2022 data breach. The breach involved NFT marketplace’s email service provider, exposing the emails of industry professionals, including Binance founder Changpeng ‘CZ’ Zhao.
Security expert “23pds” warned that the leak could further endanger the privacy and assets of crypto users. OpenSea initially disclosed the breach in June 2022 and attributed it to an employee of its vendor, Customer.io. However, the full extent of the leak only surfaced last month which left users vulnerable to scams and malicious attacks.
The post OpenSea Halts Airdrop Reward System Following Community Backlash appeared first on CryptoPotato.
OpenSea has suspended listing and bidding XP rewards after criticism. AA News, Crypto News, Non-Fungible Token (NFT), OpenSea
This articles is written by : Nermeen Nabil Khear Abdelmalak
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