Web companies

Meta plans to reduce NFT sales in its metaverse by almost 50%

Facebook announced Thursday that it is opening Horizon World, its virtual reality world of avatars, to anyone 18 and older in the United States and Canada.

Courtesy of Meta

Meta, the parent company of Facebook, plans to cut the sale of digital assets on its Horizon Worlds virtual reality platform by up to 47.5%, which is part of the company’s plan to create a so-called “metaverse”.

The social media giant announced in a blog post on Monday that it is letting a handful of Horizon Worlds creators sell virtual assets like non-fungible tokens (NFTs) in the worlds they build. However, the company failed to mention in the post office how much Meta will charge creators to sell their products.

A Meta spokesperson confirmed to CNBC on Wednesday that Meta will take an aggregate cut of up to 47.5% on each transaction. This includes a 30% “hardware platform fee” for sales made through the Meta Quest Store, where it sells apps and games for its virtual reality headsets. On top of that, Horizon Worlds will charge a 17.5% fee.

The size of the cut has irritated some members of the NFT community. A A Twitter user wrote: “I hate you Facebook.” Another mentioned“If Meta wants 47.5% of NFT sales, they have to talk to the IRS because I don’t even have that after taxes.”

Elsewhere, NFT Marketplace OpenSea takes a 2.5% cut on every trade, while rival LooksRare charges just 2%.

In recent months, businesses and individuals have purchased everything from art to real estate in virtual worlds on platforms like Decentraland and The SandBox. Hip-hop star Snoop Dogg has purchased virtual land and a fan paid $450,000 in December to buy land next to him on The Sandbox.

Vivek Sharma, Vice President of Horizon at Meta, reportedly told The Verge“We think it’s a fairly competitive price on the market. We believe that other platforms can have their share. »

Horizon Worlds (formerly Facebook Horizon) is a free-to-play virtual reality online video game that lets people build and explore virtual worlds. Meta released the game on its Oculus VR headsets in the US and Canada on December 9, but it has yet to roll out worldwide.

Meta versus Apple

Meta fees for selling virtual assets on Horizon Worlds are significantly higher than Apple charges developers on its App Store.

Meta CEO Mark Zuckerberg and other Meta executives have previously criticized Apple for charging developers a 30% fee for in-app purchases through the App Store.

In November, Zuckerberg said his company would try to help metaverse creators avoid fees from Apple’s App Store.

“As we build for the Metaverse, we’re focused on creating opportunities for creators to earn money from their work,” he said. “The 30% fee Apple takes on transactions makes this more difficult, so we’re updating our subscription product so creators can now earn more.”

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