SNEAK PEEK
- Magic Eden CEO spoke at the Breakpoint conference in Lisbon, Portugal, and endorsed a new NFT standard capable of enforcing royalties at a technological level.
- As per Lu, this is grounds for a real opportunity to give rise to a brand new asset class, as Magic Eden already spoke to dozens of creators to canvas their opinions.
- The holders will be giving up some level of control over the ownership of these NFTs in favor of the creator.
In the recently held Breakpoint conference in Lisbon, Portugal, the Co-Founder, and CEO of Magic Eden, the biggest NFT marketplace on Solana, Jack Lu, laid emphasis on promoting a new NFT standard that would implement royalties at a hard, technological level.
Lu released a statement regarding the same that addressed that there is a real opportunity available in order to give rise to a brand new asset class. This came following Magic Eden speaking to dozens of creators across several industries to share their opinions.
It was revealed that some creators are not ready to give up on their sovereign ownership, while some intend to have royalty enforcement or new business models. In addition to this, it should be noted that Lu warned that a brand new standard for NFTs would have special trade-offs. Moreover, he emphasized that royalty enforcing by essential means that the creator had some level of control.
What’s more? These NFTs will need some degree of centralization, and that simply means the holders will need to give up on some level of control in favor of the creator. As per Jack Lu, these shouldn’t even be called NFTs as the term NFT encompasses the likes of wildly varying tokens.
This way, the optional-royalty NFTs would be considered one form, and the royalty-enforcing collectibles would be considered another.
It should be laid emphasis on the fact that similar to this model, Metaplex has also proposed a new standard for enforcing royalties. In addition, OpenSea, the biggest NFT marketplace, facilitated the creation of an enforcement tool that allows creators of new projects to block ETH marketplaces that don’t enforce royalties.
Lu revealed that as most of the blockchains are not safeguarding royalties at the protocol level, this gives rise to a good chance that these market dynamics might enforce similar trends to play out in other ecosystems. Provided the types of major structural changes, there’s a lot of opportunity to be untapped.
