SNEAK PEEK
- Magic Eden has allowed NFT buyers to decide how much royalty they wish to pay to creators.
- Magic Eden knows that implications will take place and hopes the move to be temporary.
- Royalty payments are impossible to be enforced on-chain.
Solana‘s biggest NFT marketplace, Magic Eden, will now allow its users to decide how much percentage to pay to creators as royalties when they buy stuff from the website.
The company further said:
By default, ALL collections/listings will honor full royalties.
🧵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.
Buyers can set the royalty in three ways. User profiles can be edited so as to choose a percentage payment for all NFTs on the marketplace. Another way is picking a percentage for either one item or a collection.
Magic Eden will also waive transaction fees on the purchase of NFTs. 2% on sales was charged by Solana NFT platform.
The announcement has made its way at a time when a debate regarding NFT royalties is already going on. Some users believe mandatory royalty payments for non-fungible tokens shouldn’t be there. While creators argue that through these payments, they get rewarded for their efforts and work.
Creators are dependent on marketplaces such as Magic Eden for a particular percentage out of the total value the item makes while it is sold on secondary sales.
The particular status quo is now upended by certain platforms.
SudoSwap, an NFT swapper, has gained popularity for becoming a royalty-free platform.
X2Y2, a marketplace that caused a vampire attack on the largest marketplace OpenSea, announced in August about removing royalties for certain collections.
Last week, Solana’s well-known NFT collection, DeGods, removed all royalty payments, which appeared as a major move since the project’s founder previously said that removal of royalties will make NFTs even costly and lead to chances of increased scam projects. However, now the same founder has said that 0% royalties is soon going to be a standard for NFT marketplace platforms.
