SNEAK PEEK
- Optional royalties are the most talked-about subject among crypto enthusiasts.
- Magic Eden introduced the Open Creator Protocol, saying that it may collect creator royalties on Solana NFTs.
- The new framework makes it easier for NFT developers to exclude marketplaces that refuse to pay royalties on assets.
Many NFT platforms, such as LooksRare and Magic Eden, make paying royalties to artists optional; yet, royalties in the digital design industry have become a contentious issue.
Magic Eden tweeted on October 15 and said that they’ve agreed to shift to optional royalties on MagicEden after a little deep thinking and meetings with multiple creators. They’d also start running a deal to remove their platform costs later and host a creator monetization hackathon to create pro-royalty and alternative artist monetization methods.
🧵After some difficult reflection and discussions with many creators, we’ve decided to move to optional royalties on @MagicEden.
— Magic Eden 🪄 (@MagicEden) October 15, 2022
Effective later today, we will also begin running a promotion to waive our platform fees.
Via Twitter, Magic Eden explained the workings of optional royalties as well. The purchaser will make the decision on the amount of royalties to spend. And by design, all collections and listings will honor full royalties. Their reasoning for shifting royalty fees to the client is to ensure that the customer fully understands whether or not they will benefit from the benefits that artists provide.
For a long time, the marketplace has been turning towards optional creator royalties. As royalties are not enforced at the protocol level, they have had to adjust to changing market circumstances.
According to Horne, one of the most appealing aspects of cryptocurrency to musicians considering entering the field is royalties. Because this has long been a problem in traditional art, music, and other forms of creative expression.
Most NFT markets will likely adopt a zero-royalty strategy in 2023, which, although appealing to many consumers, may jeopardize digital artists’ ability to make a living from their work, according to Horne.
Magic Eden announced the Open Creator Protocol in December, claiming that it can impose creator royalties on Solana NFTs that use the tool. The new protocol, like OpenSea‘s, allows NFT creators to exclude markets that refuse to pay royalty fees on authorized assets.
