OpenSea halts XP rewards after NFT community pushback

OpenSea (CRYPTO:SEA), a non-fungible token (NFT) marketplace, paused its new airdrop reward system on February 18, 2025, after user criticism of its mechanics.

The platform's co-founder and CEO, Devin Finzer, said the platform is stepping back from XP rewards for listing and bidding.

The focus is now on XP shipments, a mechanism introduced on February 14.

The marketplace began providing access to the beta version of its upgraded marketplace, OS2, on January 28, 2025.

The OS2 version introduced points that would contribute to users' eligibility for an upcoming airdrop of the platform’s native token, SEA.

However, community members voiced frustration, saying the XP system wasn't conducive to builders, promoted wash trading, and prioritised earning fees.

Critics, like NFT collector and influencer Wale, compared the mechanics to Blur (CRYPTO:BLUR), stating that it was "Blur farming on steroids."

Wale noted that the system allowed traders to "farm XP" with zero risk due to the absence of a cool-off period between transactions, unlike Blur's 30-minute wait time.

According to one community member, airdrop farmers had already paid $20,000 in fees to OpenSea through their trading activity.

“All of these people are basically wash trading the same NFTs, dumping on each other’s bids to compete for points," the user stated.  

OpenSea is now focusing on XP shipments designed to reward participation in OS2, including buying and holding assets.

Finzer stated that early beta users who gave feedback on Discord will receive the first round of shipments.