Magic Eden will now accept NFT royalties to compensate creators
- Magic Eden has announced the Open Creator Protocol, which it promises can enforce creator royalties on Solana NFTs that utilise the tool.
- The firm previously implemented a novel system that gave traders the option of paying royalties. That model will continue for existing NFT collections. The new developments will apply only to new NFT collections.
- Following this move, Magic Eden is not in the company of other platforms including X2Y2 and OpenSea that acknowledge and honour creator fees.
One of the leading Solana marketplaces, Magic Eden has announced that it is working toward developing a sustainable system for creators by charging creator royalties.
The NFT space has seen its fair share of ups and downs over the past few years. Ridden with controversy, disputes, and regulatory tiffs, it could take a while before the NFT ecosystem treads on calmer waters. That being said, proactive NFT exchanges including OpenSea, X2Y2, and now Magic Eden are taking proactive measures to ensure creators are fairly compensated.
YOU MAY ALSO LIKE: Brace yourself! NFTs are coming to Instagram soon!
Magic Eden rolls out Open Creator Protocol
The $1.6 billion startup today launched the Open Creator Protocol (OCP), an open-source platform that new Solana NFT project creators may use to guarantee that royalties are paid each time their assets are sold on secondary markets. It is based on the SPL token standard for NFTs on Solana currently used by Metaplex.
Additional benefits for creators who use the tool include adjustable token transferability and dynamic royalties.
Jack Lu, CEO and Co-Founder of Magic Eden, commented on the news, saying that the Solana NFT community has been eagerly waiting for a resolution to end the ongoing NFT royalty controversy.
Lu said that the firm has had talks with several partners in the NFT space to come up with the best solutions for creators. He further added that the objective of launching the Open Creator Protocol is to support royalties for all new NFT collections while simultaneously working with noteworthy partners in the NFT space to find more solutions.
Although the Open Creator Protocol offers a sound solution for all current and future NFT collections, the argument about NFT royalties on past collections created on the Layer 1 proof of stake blockchain network will continue to remain a topic for discussion.
Magic Eden’s Open Creator Protocol will prohibit all NFT markets that disregard creator royalties from listing Solana-based NFT collections that have embraced the protocol, just like OpenSea’s on-chain NFT royalty enforcement tool does with OpenSea.
The Open Creator Protocol is expected to go online on December 2, 2022, offering Solana-based producers the opportunity to impose royalties on their fresh collections.
OpenSea sets the tone, and other NFT exchanges follow
OpenSea, the largest NFT marketplace in the world introduced an on-chain NFT royalty enforcement system in November. It enabled artists to impose royalties on new collections. However, following a pushback from creators, led by Yugal Labs, which came up with its proposition, OpenSea said that it would permit the imposition of creator fees on all collections.
Soon after, X2Y2, the highly incentivized NFT marketplace joined OpenSea and started enforcing creator fees on collections posted on its platform.
Royalty mechanism in the NFT market
Creator royalties are charges that are normally covered by the seller on NFT trades. The money is transferred to a digital wallet at the discretion of the NFT project’s developers, and they are usually set between 5% and 10% of the sale price. These fees can be a profitable source of income for NFT projects that produce a considerable amount of secondary trading activity.
For the latest NFT news and stories, continue reading iTMunch!
YOU MAY ALSO LIKE: Assist from Ice Hockey Legend Wayne Gretzky Helps eBay Enter NFT Space