- The Solana-based NFT marketplace will enforce creator royalties on all new NFT collections launched on the network.
- Magic Eden had earlier adopted a new mechanism allowing traders to decide whether or not to pay royalty fees.
- The company now joins OpenSea and X2Y2 in the list of marketplaces that respect creator fees.
Magic Eden has launched the Open Creator Protocol, a feature that enforces creator fees on all New Solana NFT collections. The open-source tool allows creators to choose how they enforce NFT royalties on their collections.
Creators who choose to use the tool will also enjoy additional features including dynamic royalties and customizable token transferability.
Commenting on the announcement, Jack Lu, CEO and Co-Founder of Magic Eden said the Solana NFT community has been waiting for a solution for the NFT royalty debate.
“We have been in active conversations with multiple ecosystem partners to identify solutions for creators in a timely manner. Our intention with Open Creator Protocol is to immediately support royalties for creators launching new collections while continuing to coordinate with ecosystem partners for more solutions,” said Lu.
However, while the Open Creator Protocol provides a solid solution to all new and future NFT collections, the debate will still rage on NFT royalties on existing collections minted on the Layer 1 proof of stake blockchain network.
In November, the world’s largest NFT marketplace OpenSea launched an on-chain NFT royalty enforcement tool that initially allowed creators to enforce royalty fees on new collections. However, after receiving creator backlash, led by Yugal Labs— which came up with its own proposal, OpenSea said it was going to allow enforcement of creator fees on all collections.
Soon after, the highly incentivised NFT marketplace X2Y2 followed OpenSea’s example enforcing creator fees on collections listed on its platform.
Nonetheless, just like OpenSea’s on-chain NFT royalty enforcement tool, Magic Eden’s Open Creator Protocol will ban all NFT marketplaces that do not respect creator royalties, preventing them from listing Solana-based NFT collections that have adopted the protocol.
The Open Creator Protocol is scheduled to go live on December 2, 2022, giving Solana-based creators a chance to enforce royalties on their new collections.
The company said that for new collections that do not adopt the Open Creator Protocol, royalties will remain optional, allowing traders to decide whether or not to pay. The tool also comes with added features including dynamic royalties, which display a relationship between the NFT price and royalty amount using a linear curve.
There is also customisable token transferability, which allows creators to gamify the rules of their own collection’s trading behaviour, among other things.
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