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Chronicles

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Meta's plan to take up to a 47.5% cut of each virtual transaction on Horizon Worlds draws criticism from NFT proponents; OpenSea takes a 2.5% cut

Meta, previously known as Facebook, is figuring out how to monetize the metaverse. … It's been nearly six months since the company formerly known …

CNET Daniel Van Boom

Context & Ripple Effects

Meta had just begun testing creator sales of virtual items and effects in Horizon Worlds, turning its metaverse effort into a marketplace with both app-store and Meta-level charges. The gap with OpenSea’s stated 2.5% fee gave NFT proponents a concrete benchmark for criticizing Meta’s economics.

The dispute also sharpened Meta’s long-running argument over platform commissions: Apple subsequently used the proposed Horizon Worlds charge to highlight the contrast with Meta’s criticism of App Store fees.

First-order effects

  • Horizon Worlds creators selling virtual items face a transaction cost of up to 47.5%, reducing the share of each sale retained by the people Meta is trying to recruit to its marketplace.
  • Meta gains a direct monetization mechanism for Horizon Worlds transactions, while OpenSea’s 2.5% rate becomes an immediate comparison point for NFT-oriented sellers.

Second-order effects

  • Apple can use Meta’s Horizon Worlds pricing to challenge Meta’s position on App Store commissions, making fee policy a reputational as well as commercial issue.
  • VR developers evaluating Meta distribution must weigh Horizon Worlds’ creator-sales economics alongside Quest Store charges; later developer complaints about Quest Store fees show that the comparison did not stay confined to NFTs.

Third-order effects

  • Layered app-store and platform fees make virtual-world commerce another test case for the regulated platform take-rate debate, with creator participation contingent on how much value intermediaries retain.
  • If high combined commissions persist, marketplace operators with lower transaction fees can position themselves as alternatives for digital-asset sellers, fragmenting where creators choose to transact.

The trend: Metaverse monetization is converging on platform-marketplace economics, intensifying scrutiny of stacked distribution fees and the creator share of each sale.

Discussion

  • @caseynewton Casey Newton on x
    The rent in the metaverse is too damn high. I wrote about Meta, Microsoft, and Roblox all taking nearly half of creators' earnings https://www.platformer.news/ ... https://twitter.com/...
  • @punk6529 @punk6529 on x
    3/ Step 2 47.5% transaction fees!!!!!!!!! https://twitter.com/...
  • @stevekovach Steve Kovach on x
    Meta is burning at least $10 billion/year on its metaverse pivot. No ads (yet). So you're seeing the squeeze on any creator/developer trying to make money in this new thing.
  • @jameshercher James on x
    Apple doesnt actually abhor ‘surveillance advertising,’ it wants to own that for itself. Just like Facebook, Epic, Microsoft dont abhor Apple's usurious platform policies - they just prefer it was them. https://twitter.com/...
  • @stevekovach Steve Kovach on x
    “Meta's overall take rate is higher than Apple's.” https://twitter.com/...
  • @paultassi Paul Tassi on x
    incredible, just a truly excellent job well done guys https://www.businessinsider.co.za/ ... https://twitter.com/...
  • @jemgold_ @jemgold_ on x
    web3 fixes this https://twitter.com/...
  • @slhamlet Wagner James Au on x
    Selling Quest units at a huge loss to grow consumer market share while hitting grassroots creators using the Quest with heavy commission fees is an interesting way to make a metaverse platform. https://nwn.blogs.com/... https://twitter.com/...
  • @axieaur @axieaur on x
    Lol. Sauron back it again with the red eye. https://twitter.com/...
  • @punk6529 @punk6529 on x
    The future of work is giving Meta 47.5% of your salary, apparently.
  • @degentraland @degentraland on x
    Facebook charging 47.5% for every NFT sale is the best thing to ever happen to us.
  • @nizzynft @nizzynft on x
    47.5% for Facebook creator sale fees? Yeah ok Zucky boy https://twitter.com/...
  • @boredape93 @boredape93 on x
    If we pay the 47.5% transaction fee, can Meta at least give us the other half of our bodies? 😂 https://twitter.com/...
  • @puffyatty @puffyatty on x
    no one: zuckerberg: i'm more of a glass 47.5% full kind of guy
  • @matteastwood Matt Eastwood on x
    Inflation is real in the Metaverse too ... https://twitter.com/...
  • @muneeb @muneeb on x
    Dear Zuck, Why 47.5% fees in your metaverse? You should take 51% to cement the point that you, and not the people, own it.
  • @skillupyt @skillupyt on x
    If you were under the illusion that the Metaverse would be this liberating, creator-driven, egalitarian utopia, please take note that The Corporations are doing the same shit they were doing before, only worse this time around. https://www.businessinsider.co.za/ ...
  • @punk6529 @punk6529 on x
    Glad to see the regulatory state has lots of time and energy for “free airdrops to consumers” but Meta charging 47.5% tax on everyone's creative output is very good and very nice.
  • @iandaos @iandaos on x
    Meta will charge creators fees of up to 47.5%. “If a creator sells an item for $1.00, then the Meta Quest Store fee would be $0.30 and the Horizon Platform fee would be $0.17, leaving $0.53 for the Creator before any applicable taxes.” This is web2. https://www.businessinsider.co…
  • @twobitidiot @twobitidiot on x
    Would you rather live in zuck's metaverse with its cringe and 47.5% flat tax rate or kill your actual self?
  • @punk6529 @punk6529 on x
    47.5% Meta take rates on digital goods are a pretty good reason to push for an open metaverse, even if you don't believe me on the “risk of dictatorship” stuff
  • @mdudas Mike Daodas on x
    Zuckerberg: Apple's 30% App Store fees are outrageous Also Zuckerberg: Meta is going to charge up to 47.5% creator fees in its metaverse https://www.businessinsider.com/ ...
  • @loopifyyy @loopifyyy on x
    Meta proposing a 47.5% fee on the sales of their “NFTs”. L-O-L. https://twitter.com/...
  • @punk6529 @punk6529 on x
    Footnotes: 1. 2.5% transaction fee on OpenSea 2. Meta's proposed pricing below https://twitter.com/...