New Fee of 47.5% Charged by Meta for Metaverse Items Made NFT Twitter Angry

Written by C, Fiona

Last updated: 2022-04-25

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Meta, formerly Facebook, is trying to monetize Metaverse.

The company formerly known as Facebook has been renamed Meta for nearly six months, which is also an affirmation of its ambition in Metaverse. On Monday, the company released details of how it plans to make its horizon worlds Metaverse application profitable. At present, it can only be accessed through VR and launched a test phase, which will allow some creators to sell items in the world to users.

One area that NFT twitter pays special attention to is that Meta takes a 47.5% commission on each transaction.For each item sold in horizon world, 30% of the share belongs to Meta through oculus platform, and the remaining 25% belongs to Meta app store. This is more than Apple’s often criticized 30% app store fees, and more than NFT dealers are used to. In the field of NFT, opensea on the market takes 2.5% of each transaction, while creators usually take 2.5% to 7.5%.

To clarify, the items Meta is selling are not counterfeit tokens. They are more similar to the skins and animations you can currently buy in games such as fortress night. However, the Metaverse being built by Meta is competing with the original Metaverse of cryptocurrencies such as Sandbox and Decentraland, in which the world’s goods are owned as NFT.

How to Construct Metaverse

The core of this problem is a philosophical view on how to construct Metaverse. Metaverse refers to any digital world frequented by large groups of people – think of “second life” or even games like world of Warcraft. The question now is whether the next wave space guided by the world’s largest social media company should be closed or open. The enclosed Metaverse is managed by a central agency, and the land and goods are owned by the company that established the world. An open Metaverse allows people to buy and own the land and goods of Metaverse in the form of NFT and convert them into cryptocurrency.

For example, take Sandbox as an example. This is a world of blockchain integration, which is currently being tested. It is composed of 166464 fixed land, which can be purchased and used like real-world property. The creators make the world’s goods. They sell them in sand dollars, a local cryptocurrency that can then be converted into ether.

The argument is that compared with the centralized design Metaverse such as horizon world, the open Metaverse will be a more organic virtual society. “Facebook’s 47.5% fee for each NFT sale is the best thing that has ever happened to us,” a tweet said, meaning that Meta’s exorbitant fees will promote creators to open tuples such as Sandbox and Decentraland.

Cryptocurrency promoters say that as NFT buys goods in the world, you can really own it – you can sell it, trade it or hold it as an investment, just like real-life goods. It seems that Meta’s goal is to replicate this benefit. CEO Mark Zuckerberg said on Monday: “obviously, the ability to sell virtual goods and bring them from one world to another will be an important part of [Metaverse].”

Offensive to NFT Traders

Meta will charge 47.5%, which is an affront to NFT traders. They may point out that Decentraland and Sandbox charge 2.5% and 5% creator fees for their items, respectively. However, a primitive like Sandbox is a double speculative opportunity, and the value of the item can be purchased and sold for profit (or loss). In this model, creators make money by taking money from large items that may never be part of the world built by Meta. When the item sold was a $4.3 million piece of land, the 5% cost of the Sandbox was equivalent to a lot, compared with 47.5% taken by Meta from a $10 garment.

Many people believe that Metaverse is the next big event: Facebook changed its name to Meta to reflect this belief, while NVIDIA’s CEO believes that the Metaverse economy will be larger than the real world economy. However, what Metaverse looks like is still unknown. There are still many unknowns about how the horizon world will develop. Meta has said in the past that NFTs will be integrated into its Metaverse in at least a limited way, and it is said to be developing a world currency.

Metaverse