Magic Eden defends the launch of a royalty enforcement tool NFTs are one of the most exciting new technologies in finance and blockchain, and an important step forward in how we see and trade assets. However, because NFTs are still in their early days, they still lack a lot of governance and proper processes. In addition, NFTs can be used for all kinds of nefarious purposes, like money laundering and drug trafficking. In fact, because of NFTs, criminals are now using cryptocurrencies like Bitcoin to pull off their crimes. To address these issues, Magic Eden has developed a new platform NFT Enforcement Tool (NFTET). In addition to helping NFT issuers identify counterfeit NFTs, NFTET also enables issuers to gain consensus on their use and distribution of NFTs and to identify and report any suspicious NFT activity. NFTET is now up for public beta testing, and the tool will be available to NFT users soon
MetaShield protects creators by enabling them to flag NFTs that avoid paying creator royalties or blur images if the listed or traded NFT bypasses creator royalties.
Some community backlash has erupted against Magic Eden’s nonfungible token (NFT) marketplace following the introduction of MetaShield, the firm’s new enforcement tool aimed at discouraging NFT buyers who bypass creator royalties.
MetaShield, a blockchain-based NFT platform that was developed in partnership with NFT marketplace Coral Cube, received mixed reviews from the NFT community on Sep. 12 following its launch, as some individuals found NFT marketplaces protecting creator rights to be more important than cutting royalty fees to make NFTs cheaper for collectors.
The NFT royalty enforcement tool is intended to let NFT creators identify and conceal NFTs for sale that might have evaded creator payments.
On Wednesday, Magic Eden defended its new tool, arguing that some of the ‘ hardest working creators today’ are being ‘punished’ by ‘custom’ royalty markets.
NFT marketplace X2Y2 debuted a new tool last few weeks that gives buyers the power to decide whether or not to pay a royalty fee when purchasing an NFT.
According to Magic Eden, MetaShield was created to protect creators rather than penalize buyers.
According to Magic Eden, “most people” recognize that “zero royalty marketplaces for all creators shouldn”t become the “ecosystem norm”:
The NFT marketplace has also confirmed that it will not be controlling NFTs and that the royalty enforcement tool will not be used to punish buyers.
MetaShield was built to allow creators to track Solana NFTs listed with custom royalties and take action where they see fit, according to Magic Eden.
The Magic Eden website states that NFT creators are allowed to “Edit” the NFT and modify the royalty, watermark, or blur the image, if they so desire. Once the debt has been paid, the NFT can be reverted back to its original state as it was before the creation of the NFT.
The launch of Magic Eden’s MetaShield was met with mixed responses from the community.
Some Twitter users thought that MetaShield’s addition to the Magic Eden NFT marketplace would centralize the market, while another user believed no one would mint NFTs if the authors used MetaShield.
Not every NFT marketplace has chosen to support Magic Eden. Sudoswap” refuses to apply royalty fees to its NFT platform to make it more customer-friendly.
Even where smart contracts are set in place to pay royalties to creators, it ultimately depends on the NFT marketplace to honour the royalty agreement, said Langston Thomas from ‘nft now’.
This is because the NFT marketplace receives the royalty first via the transaction, and is not required to pass that royalty on.