Magic Eden will still require royalties to be set by default for all collection and listing listings.
Magic Eden, a Solana-based NFT marketplace, has made the jump to optional royalties, following X2Y2’s lead in August, albeit reluctantly.
Under the optional royalties model, buyers can set the royalties they want to contribute to an NFT project, meaning some creators might not receive royalties when their artworks are sold.
The NFT marketplace declared on Oct. 14 that it has decided to adopt a marketplace model, after many creators demanded it. The market has been trending in that direction for some time.
A glance at the NFT graph provided by the NFT marketplace reveals how much NFTs have been bought or sold via optional royalty marketplaces in recent weeks.
Despite the move being met with favourable reception from Twitter’s NFT community, some see it as a long-term positive for the industry, whereas others see it as “theft”.
On Oct. 15, NFT artist Mike “Beeple” Winkleman appealed to his 700,000 followers for feedback on what he described as a change in Magic Eden’s buyer’s premium from a seller’s fee to a buyer’s premium. He hoped that a reduction in buyer resistance might lead to more sales.
Fuego Labs, behind CaptainFuego, told their nearly 10,000 followers that “Royalties are stupid and should not exist. It’s great to see platforms taking this approach.”
According to the study, in the present marketplaces, If a 0% purchase is done on other marketplaces, the artist should get the royalty of the amount that they lose. On the other hand, what if the song is purchased on the platform, the artist should be paid the royalty of the amount that they receive.
They warned that in the future, anyone who hasn’t paid royalties will be blocked from accessing our Discord channels. Not paying royalties is theft, so we will treat it as such.
“It’s a serious change and we’ve been looking at different options,” Magic Eden said after the update.
MetaShield is a royalty enforcement tool that the NFT marketplace tried to bring to life last month. It was meant to deter buyers from trying to skirt creator royalties by purchasing NFTs that did not pay royalties.
According to Magic Eden’s most recent blog post, unfortunately, royalties are not implemented on a protocol level, so we had to modify our business strategies to adjust to changing market conditions.
NFT marketplace X2Y2 introduced a similar option in August, allowing buyers to set the royalty fee when buying an NFT.
According to data on NFTGo, in the last three months, X2Y2’s trading volume was ranked first, surpassing OpenSea, after the platform’s move.