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Meta plans to take a nearly 50% cut on NFT sales in its metaverse

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Facebook has announced on Thursday that Horizon World is now open for anyone aged 18 or older to use its virtual reality environment of avatars.

Meta

Facebook-parent MetaIt plans to get a discount of as high as 47.5% from the sales of digital assets via Horizon Worlds. This part is integral to the company’s strategy for creating a virtual world.

In a Monday blog post, the social media company announced that they are letting a handful of Horizon Worlds creators sell virtual assetsLike non-fungible tokens, (NFTs), within the worlds that they create. But, they failed to mention that in the postMeta’s selling price for creators.

CNBC received confirmation Wednesday from a Meta spokesperson that Meta will receive a cut totaling up to 47.5% per transaction. That includes a “hardware platform fee” of 30% for sales made through the Meta Quest Store, where it sells apps and games for its virtual reality headsets. Horizon Worlds will also charge 17.5%.

Some in the NFT community were angered by the size of this cut. One Twitter user wrote: “I hate you Facebook.” Another said: “If Meta wishes to sell 47.5% NFT, they should talk to IRS. I don’t even own that after taxes.”

OpenSea, an NFT platform, takes 2.5% of every transaction while LooksRare only charges 2%.

Companies and individuals have bought everything in the virtual worlds of platforms such as Decentraland, The SandBox and other online marketplaces over recent months. Snoop Dogg, a hip-hop superstar has bought virtual land. a fan paid $450,000 in December to buy a plot next door to him on The Sandbox.

Vivek Singh, Meta’s vice president of Horizon reportedly told The VergeWe believe it is a very competitive market rate. Other platforms should be allowed to compete for our market share, we believe.”

Horizon Worlds (formerly Facebook Horizon) is a free virtual reality, online video game that allows people to build and explore virtual worlds. The game was published by Meta on Oculus VR headsets in Canada and the U.S. on December 9, but has yet to roll out globally.

Meta vs. Apple

Meta’s commissions for Horizon Worlds virtual asset sales are much higher than AppleDevelopers are charged by the App Store

Mark Zuckerberg, Meta CEO and others have criticised Apple’s charging of developers 30% for app purchases through the App Store.

Zuckerberg stated in November that his company would try to avoid Apple’s App Store fees for metaverse creators.

He stated that as developers for the metaverse we are focused on creating opportunities for creators to earn money through their work. Apple charges 30% for transactions, making it more difficult. We’re upgrading our subscriptions product to make creators earn more.



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