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Meta plans to take 47.5% cut on virtual asset sales in its metaverse

Meta plans to take 47.5% cut on virtual asset sales in its metaverse

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

Courtesy of Meta

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

The social media giant announced in a blog Monday that it is allowing a few Horizon Worlds creators to sell virtual assets within the worlds they build, which could eventually include NFTs. However, the company failed to indicate in the post how much Meta would cost creators to sell their merchandise.

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

The size of the cut has angered some in the NFT community. One Twitter user wrote: “I hate you Facebook”. else She said: “If Meta wants 47.5% of NFT sales, they should talk to the IRS because I don’t have that even after taxes.”

Elsewhere, NFT’s OpenSea Marketplace takes 2.5% off every transaction, while rival LooksRare charges just 2%.

Over the past few months, companies and individuals have been capturing everything from art to real estate in virtual worlds on platforms like Decentraland and The SandBox. Hip-hop star Snoop Dogg has bought a virtual land and a fan paid $450,000 in December for a plot of land next door to him in The Sandbox.

Vivek Sharma, Vice President of Meta for Horizon, reportedly told The Verge, “We think it’s a very competitive pricing in the market. We believe in other platforms’ ability to capture their share.”

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

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