Once disparaging Apple due to its high discount on the App Store, Meta shocked NFT investors by announcing a nearly 50% fee for each virtual item transaction.
Under the plan to monetize the sale of virtual items on the Horizon Worlds platform, Meta (Facebook’s parent company) said it will charge 47.5% of revenue for each transaction. Of which 30% is the “Hardware Platform Fee” from the Meta Quest Store and 17.5% is from Horizon Worlds.
According to CNBC, many users in the NFT community have criticized Meta for its excessive discounts. “I hate you, Facebook”, “If you have to pay 47.5% of the transaction fees, at least Meta give us the other half of your body”, were some Twitter comments about the transaction fees in Horizon Worlds. On this platform, users are represented by virtual dolls without a lower body.
For comparison, Meta’s discount is 30% higher than Apple’s for the App Store, many times more expensive than NFT exchanges. For example, the OpenSea “market” collects only 2.5% of each transaction, while the occurrence is 2%.
Vivek Sharma, vice president of the Horizon division in Meta, told The Verge, “We think it’s a pretty competitive discount in the market. Another user even said that the Meta price drop is a “good thing” as more people will choose another platform to sell NFTs on.
Horizon Worlds allows users to interact, chat and play games in virtual reality using the Oculus VR headset. With plenty of 3D space, Horizon Worlds is an important Meta foundation in the metaverse development strategy of the next 10 years. However, users can only experience this space with Oculus glasses for $300, the platform login information is linked to a Facebook account.
Currently, items in Horizon Worlds are not NFTs (Non-Fungible Tokens), but rather virtual in-game items such as costumes and paints. However, Meta has plans to integrate NFT, aiming to compete with metavers like Sandbox or Decentraland.
For comparison, Sandbox or Decentraland offer 5% and 2.5% discounts on transactions, respectively. With NFT items, buyers can resell them at a profit or loss. Some NFTs in the Sandbox are very valuable, for example lots that once paid $4.3 million. Therefore, the 5% discount will be greater than the 47.5% discount for the $10 skins in Horizon Worlds.
When Facebook changed the company name to Meta in October 2021, CEO Mark Zuckerberg criticized Apple’s 30% discount on the App Store and vowed to help creators in the metaverse avoid the fee.
“When we built the metaverse, we focused on the opportunity to help creators monetize their work. Apple’s 30% fee on transactions makes it difficult, so we’re here to stay. Always here. We’re updating our products from subscription so creators can earn more money,” Zuckerberg said.