OpenSea Unveils New Protocol and $SEA Token

OpenSea, the Andreessen Horowitz-backed NFT platform, has unveiled a new version of the protocol in beta, according to social media posts. The company also teased a new $SEA token.

OS2: A Revamped Protocol

OS2, as the revamped protocol is called, is a “fully reimagined product built entirely from the ground up, for collectors and pro.”
This launch comes amid dwindling interest in non-fungible tokens, which dominated attention during the pandemic-era bull run.

In 2023, cumulative NFT trade volumes fell below $9 billion, lower than the two best months in 2022 combined. Although volumes and floor prices are still off their all-time highs, December 2024 marked the best month for NFT trading in over a year, according to The Block’s trading data.

Market Dynamics

OpenSea dominated the NFT exchange market during the last bull run but faced competition from decentralized alternative, Blur, which significantly reduced “royalty fees” paid to NFT creators after launching its token in 2022.

In late 2023, OpenSea CEO Devin Finzer announced staff reductions to focus on launching “OpenSea 2.0.” Despite challenges, OpenSea has been regaining market share. While Blur still has more trades, OpenSea earned over $4 million in revenues in December, its best month in years, as reported by The Block. OpenSea charges a 2.5% fee on secondary sales and between 2.5% to 10% on primary drops.

Features of OS2

OS2 will reduce marketplace fees to 0.5% and swap fees to 0%. The revamped platform will also integrate 14 new blockchains, including several Ethereum Layer 2s, like Sony’s Sonieum and Bored Ape’s Apechain, along with newer launches like Berachain.

The OpenSea Foundation has indicated that the $SEA airdrop will be weighted towards “historical OpenSea usage, not just recent activity,” and U.S. users will also be eligible.

“We’re focused on long-term sustainability and supporting a healthy, enduring community,” the foundation stated. “No details on timing yet. We’re taking the learnings from this space and getting it right.”