Magic Eden, a nonfungible token (NFT) marketplace based in Solana, California, is the most recent platform to make available a tool that allows creators to enforce royalties on their collections.
It comes after rival NFT marketplace OpenSea revealed a comparable tool at the beginning of November.
The Open Creator Protocol is the name of the open-source tool for enforcing royalties, which is built on top of Solana’s SPL token standard. As of December 2, this will make it possible for new collections that opt to adopt the standard to impose royalties.
Magic Eden’s Jack Lu initially hinted at the idea at Solana’s Breakpoint 2022 conference
At Solana’s Breakpoint 2022 conference on November 5, Lu first proposed the idea of NFTs built to enforce royalties, citing the necessity for NFT creators to have a “sustained revenue model.”
Additionally, OCP users will be able to block marketplaces from selling their works if they don’t enforce royalties. Magic Eden will keep providing optional royalties on its platform for collections that do not adopt OCP.
Magic Eden stated that it “can’t retroactively apply OCP to existing collections” in a Twitter thread on December 1. The company advised creators to conduct “burn [and] re-mints,” in which NFTs are sent to an irreversible wallet address and then reissued by the collection.
“The Solana community has been waiting for solutions to NFT royalties.” “We have been in active conversations with multiple ecosystem partners to identify solutions for creators in a timely manner. Our intention with Open Creator Protocol is to immediately support royalties for creators launching new collections while continuing to coordinate with ecosystem partners for more solutions.”
Jack Lu, CEO and Co-Founder of Magic Eden commented
Adding dynamic royalties, which could lower the value of royalties for buyers who pay higher prices, and customizable token transferability, which could limit NFTs to a certain number of trades or be subject to a trade freeze for a specific amount of time, are additional features of the protocol touted by Magic Eden.
Magic Eden switched to an optional royalties model in October, giving customers the freedom to choose the royalties they want to give to projects. This decision divided the NFT community on Twitter.
