Opensea OS2 is live, sparking controversy over the NFT agriculture frenzy

Opensea’s extremely anticipated OS2 replace and the launch of $Sea Token Airdrop have sparked widespread controversy throughout the NFT neighborhood.

With OS2, customers can now earn XP by way of bids and lists. NFTS is a system designed to distribute $Sea tokens to future AirDrop. Nevertheless, merchants are engaged in excessive frequency flipping of NFTs with minimal losses to shortly establish the best way to recreation the system and maximize XP rewards.

This has raised considerations that Opensea is prioritizing quantity and charges over the long-term well being of the NFT ecosystem.

What was the neighborhood’s response?

On the coronary heart of the controversy is Opensea’s XP system. This rewards merchants to bid and listing NFTs quite than making actual purchases. This has exploded high-frequency buying and selling, with XP farmers turning NFTs over in seconds, pushing the quantity of the market to synthetic highs while inflicting important harm to NFT ground costs.

Waleswoosh described Opensea as “a blurry farming of steroids” because it underlines the shortage of a cooldown interval. This highlighted the blur, a measure beforehand applied to curb extreme washing transactions, and centered on farmers who’re operating fast transactions to build up XP with minimal loss. In accordance with the publish, the dealer was capable of cycle by way of NFT bids, dumping them on the subsequent farmer inside 24 seconds, paying $5.38 for every commerce.

Many imagine that Opensy’s technique is a platform that can enhance engagement numbers, guarantee traders’ returns, and name it a “absolute stigma” that can prioritize income over the well being of the NFT ecosystem, and duplicate Blur’s agricultural mechanics with out contemplating collectors and creators.

The frustration is additional mirrored, as one other member describes the upcoming $Sea Airdrop as only a “last-minute liquidity play earlier than the top of the cycle.”

How did Opensea reply to the controversy?

Regardless of rising protests, Opensea has not addressed these considerations instantly.

Co-founder Devin Finzer briefly commented that XP’s compensation has been prolonged past bids and listings, however no additional particulars have been offered in regards to the firm’s plans to ease considerations about washing transactions and decrease ground costs.

For now, Opence’s guess on agriculture-based incentives is pushing the NFT market into one other high-risk cycle. It stays to be seen whether or not the platform will take heed to the neighborhood and make changes, however as historical past reveals in Blur’s earlier farming season, unchecked speculative buying and selling can depart lasting harm to the NFT ecosystem.