The NFT marketplace X2Y2 has just announced that it will launch a brand new tokenomics model. After launching with an airdrop last month, X2Y2 will be ending its previous model that involved giving users rewards for listing NFTs.
The new X2Y2 tokenomics model will involve trading rewards
In short, X2Y2 is a fairly new NFT marketplace that launched hoping to break down OpenSea’s stranglehold on the Ethereum NFT market. Much like major OpenSea competitor LooksRare, X2Y2’s token airdrop and tokenomics were a central aspect of the platform. In essence, X2Y2 claims to be a community-owned platform that gives 100% of profits to token holders.
Evidently, X2Y2 ran into some issues with its former tokenomics model. To explain, that tokenomics model saw X2Y2 reward users with token rewards for listing NFTs. However, X2Y2 explains the issues with its tokenomics in its blog post announcing the change.
To that end, X2Y2 highlighted three main issues with the tokenomics model:
- It encouraged users to list items that were unlikely to sell just to reap token rewards. X2Y2 doesn’t believe that this helps the NFT market overall.
- While the dev team had to spend a lot of time on improving the listing rewards system, there was no way to get a perfect result.
- X2Y2 wants its tokenomics to reward users for actually buying and selling NFTs
As a result, X2Y2 is shifting its tokenomics model to a trading rewards system. In this new model, 624,902 X2Y2 tokens will be sent to people buying and selling NFTs on X2Y2. What’s more, the transaction fees from sellers will be split among X2Y2 stakers in wETH.
Could the news help X2Y2 capture more NFT traders?
That wasn’t the only announcement from X2Y2. In an attempt to bring more people to its NFT marketplace, X2Y2 will waive all platform fees for the entire month of April. That is to say, there will be no market fees for sellers or gas fees for buyers for the whole month.
All in all, this tokenomics change is major news for X2Y2 that could very well attract users from other platforms. By the same token, X2Y2 announced an integration with Gem earlier this month. For those who don’t know, Gem allows users to buy multiple NFTs in a single transaction while saving on gas fees.
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