NFT Marketplace Magic Eden Adopts a Variable Royalty Model
Solana’s premier NFT marketplace is the latest platform to adopt a no-fee arrangement. This is similar to what X2Y2 and other platforms have done, which has caused some controversy.
The popular Solana non-fungible token (NFT) Magic Eden is switching to a royalty system that users can choose to use. This was announced by the marketplace in a Friday night Twitter thread.
?After some difficult reflection and discussions with many creators, we’ve decided to move to optional royalties on @MagicEden.
Effective later today, we will also begin running a promotion to waive our platform fees.
In addition, the corporation will waive its 2% platform charge beginning Friday evening. In an effort to attract more users, several prominent NFT marketplaces, such as X2Y2, have elected to make royalty payments optional, much to the disgust of the majority of producers.
In a release, Magic Eden said, “We hope that this decision is not permanent.”
On NFT Twitter, Magic Eden’s message provoked a quick uproar. For 30 minutes following the release, the business organized a Twitter chats to take questions from its users.
“It’s also very sad, it’s also very tragic. We did not want to be in this position, but the market has already spoken in regards to optional market royalties,” a Magic Eden representative said. “It was effectively a race to the bottom.”
In addition, the firm said that it is contributing $1 million to a fund to develop improved royalty enforcement tools, and that it plans to experiment with “alternative models outside of royalties” in the future. Sixty percent of NFT traders are presently using royalty-free platforms, according to a spokesperson from Magic Eden.
In June, Magic Eden raised $130 million with a value of $1.3 billion.
