OpenSea has temporarily suspended its XP rewards system after facing criticism from users. The program, part of its new OS2 platform, allowed traders to earn XP points for listing and bidding on NFTs, which would later be redeemable for SEA token airdrops. However, concerns grew over potential manipulation and wash trading.
Many users took advantage of the system by flipping NFTs back and forth to accumulate XP without engaging in real trading. Unlike competing marketplace Blur, OpenSea did not implement cooldown periods, making it easier to game the rewards.
In response to community backlash, OpenSea CEO Devin Finzer announced the pause and stated that the company would refocus on new engagement mechanisms. Instead of incentivizing rapid trading, OpenSea aims to reward users who hold and support NFT projects over time.
The move underscores the broader challenge NFT platforms face in balancing incentives for traders, creators, and collectors. OpenSea’s changes may signal a shift toward more sustainable engagement strategies in the evolving NFT ecosystem.
