The hottest cross-chain NFT platform, Magic Eden, has decided to move to optional royalties. Effective later today, the platform plans to run a promotion to waive their 2% platform fees.
They assure in their tweet thread that this move has serious implications for the ecosystem and that they are not taking decisions lightly. Magic Eden, hopes to see new standards that protect royalties.
They also hope it is not a permanent decision. Today, royalties are not enforceable on-chain.
Magic Eden reveals that the market has been shifting toward optional creator royalties for a while. These charts show the cumulative wallets that have used optional royalty marketplaces to buy or sell NFTs.
Magic Eden, also asserted that they have been actively attempting to prevent this outcome and have spent the previous few weeks investigating alternative solutions. Since royalties cannot be enforced at the protocol level, they were forced to adjust to changing market dynamics.
Further they revealed, How will optional royalties work?
For the foreseeable future, Magic Eden will not be making any % of any sales. They have also consulted with traders and creators, and have come up with the following trading experience:
- The decision on how much royalties to pay will be passed to the buyer.
- By default, ALL collections/listings will honor full royalties.
In addition, they will launch a Creator Monetization Hackathon to develop pro-royalty & alternative creator monetization tools with prize money up to $1 Million.