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April 15, 2022

Meta Plans To Take Nearly 50% Cut of Every NFT Transaction in Horizon Worlds’ Metaverse: Report

By Daily Hodl Staff

Tech unicorn Meta is planning on taking almost a 50% cut on all non-fungible token (NFT) transactions in its upcoming metaverse product called Horizon Worlds.

According to a report from CNBC, a Meta spokesperson said that the company will take up to 47.5% of each transaction, including a “hardware platform fee” of 30% for all sales made through the Meta Quest Store, where apps and games are sold for virtual reality headsets.

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The fees also include a cut from Horizon Worlds, which will charge 17.5% per transaction.

Some feedback to the news has been critical, as the fees would be considerably higher than transaction costs on leading NFT marketplaces like OpenSea or LooksRare.

Vivek Sharma, Meta’s vice president of Horizon, told The Verge,

“We think it’s a pretty competitive rate in the market… We believe in the other platforms being able to have their share.”

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In an announcement, Meta said it was testing out new programs with select creators, including the “Horizon Worlds Creator Bonus,” which would pay creators monthly to reach certain goals.

“As part of our ongoing commitment to support creators, we’re beginning to test several new tools that will enable creators to experiment with different ways to monetize what they’re building in Horizon Worlds.

While we’re launching this today as a test with a handful of creators to get their feedback, these types of tools are steps toward our long-term vision for the metaverse where creators can earn a living and people can purchase digital goods, services, and experiences…

These bonuses come in the form of goal-oriented monthly programs where the creators are paid out at the end of the month for their progress toward the goal. Creator bonuses are not subject to fees and will be paid to creators in full. For now, in this limited test, creators will be rewarded for building worlds that attract the most time spent, but over time we may evolve these goals, for example, to encourage creators to adopt new tools or features we roll out.”

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Featured Image: Shutterstock/Iryna Palmina/Natalia Siiatovskaia

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