Magic Eden Releases Protocol to Enforce Creator Royalties
Starting December 2, 2022, all the new NFT collections launching on the Magic Eden marketplace will have creator royalties. Magic Eden is now a part of the list of marketplaces that provides creator fees to the creators.
In a new announcement, Magic Eden is following in the footsteps of OpenSea and X2Y2. The new feature is an update to an earlier function where the traders had the choice to pay royalty fees. But now, every new NFT collection will benefit from royalty or creator fees. The new Open Creator Protocol allows gives the power in the hands of the creators on how they wish to enforce the NFT royalties.
Magic Eden's New Feature has Much More than Creator Royalties
The new Open Creator Protocol (OCP) works on Solana’s SPL managed-token standard. As the creators get the power to enforce royalties, they will also get to ban marketplaces that don’t have the same rules. The CEO and co-founder of Magic Eden, Jack Lu, says, "The Solana community has been waiting for solutions to NFT royalties. Our intention with Open Creator Protocol is to immediately support royalties for creators launching new collections. This happens while continuing to coordinate with ecosystem partners for more solutions.”
The creators can access additional features, including Dynamic royalties and customizable token transferability. Dynamic Royalty is a feature that outlines a relationship between NFT sale prices and royalty amounts. The customizable token transferability allows the creators to gamify the rules governing their collection’s trading behaviour.
Moreover, this is happening only a month after Magic Eden adopts the Optional Royalty model. Even though the new collections will benefit, the debate is still ongoing about the position of the existing NFT collections vis-a-vis NFT royalties.
OpenSea, a leading NFT marketplace, also spoke out against making royalties optional earlier this month, noting that the industry was “trending toward significantly fewer fees paid to creators.”
Meanwhile, NFT marketplace Exchange.Art introduced a new standard called the "Royalties Protection Standard" earlier this month, which ensures royalties are enforced on secondary sales of NFTs that originate on its platform.