Magic Eden is poised to implement code enabling new NFT collections on the platform to enforce creator royalties and “gamify” how customers interact with collections. On launch day, a free coin contains a few thousand gift boxes, some of which contain prizes.
Solana’s largest NFT marketplace, Magic Eden, has followed in OpenSea’s footsteps and released code that allows developers to apply royalties to new NFT collections. The move is a change of heart from its previously expressed stance on creator fees. In early October, the marketplace announced a move to an optional royalty model. Those who bought or sold NFTs on its marketplace could choose what percentage of the sale was returned to the original artist. The decision was controversial and generated criticism from a wide range of collections. At the time, co-founder Zhuoxun “Zedd” Yin likened the decision to a prisoner’s dilemma case.
The Open Creator Protocol (OCP) tool is based on Solana’s managed SPL token standard. The company said that beginning December 2, creators who launch new collections and choose to use the protocol could protect their royalties and leverage the customizable token transfer feature.
OCP allows creators to ban marketplaces that have not applied royalties to their collections. License fees remain optional at Magic Eden for new sets that do not adopt the code. Customizable transferability could include tokens from a collection that cannot be traded before mints close or restrictions on tradability by time, total trades, or metadata text. Creators can now play the rules of commercial conduct on their collection, Magic Eden said. Transfers on the platform allow collectors to freely move their NFTs for collections using the Open Creator Protocol.
The code enables a dynamic function that specifies a relationship between the selling price of an NFT and the royalty amount over a linear price curve. “The Solana community has been waiting for NFT royalty solutions,” said Jack Lu, CEO, and co-founder of Magic Eden, in a press release. We’ve had ongoing conversations with several ecosystem partners to develop quick fixes for creators.
There will be a free Mint on release day offering a few thousand gift boxes, some of which include prizes including a free MacBook Air laptop, access to Tomorrowland’s December Whitelist (The Symbol of Love and Unity), and access to Genopet’s game and free NFTs from Degen Trash Panda and Liberty Square.
While the debate over creator payment has reached a climax on web3, Magic Eden is following marketplaces like OpenSea to find ways to enforce creator royalties on-chain. OpenSea’s smart contract code restricts NFT sales to marketplaces that enforce creator quotas. In the coming months, the company will develop more tools with similar purposes and seek community feedback on developments. In the meantime, other markets have switched to other models. Stephen’s new NFT marketplace Mooar launched with a subscription-based trading service.