Magic Eden, a Solana-based non-fungible token (NFT) marketplace, has become the latest platform to launch a tool that allows creators to apply royalties to their collections.
It follows the announcement of a similar tool from rival NFT marketplace OpenSea in early November.
According to a December 1 statement, the open source royalty enforcement tool is based on Solana's SPL token standard and is called the Open Creator Protocol (OCP). This will allow the application of royalties for the new collections that opt โโfor the standard as of December 2.
Lu previously raised the idea of NFTs designed to enforce royalties at Solana's Breakpoint 2022 conference on November 5, citing the need for NFT creators to have a "sustained revenue model."
Creators using OCP will also be able to ban marketplaces that have not applied royalties to their collections. Magic Eden will still maintain optional royalties on its platform for sets that do not adopt OCP.
2/ The Solana community has been waiting for a resolution on royalties.
When we moved to optional royalties in mid-October, we said we hoped to return to a world that respects royalties soon. However, royalties needed protection at the protocol level to be truly defensible.
โ The Magical Eden (@MagicEden) December 1, 2022
In a December 1 Twitter thread, Magic Eden said it "cannot retroactively apply OCP to existing sets," telling creators they will have to "burn [and] mintsโ where the NFTs are sent to a unrecoverable wallet address and reissued by the collection.
"We have been in active discussions with multiple ecosystem partners to identify solutions for creators in a timely manner," Lu said in the statement. He added that the market's intent with OCP was to "immediately support royalties" for new collections while coordinating with other partners for more solutions.
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An additional feature of the protocol promoted by Magic Eden is the ability for creators to introduce dynamic royalties, which could reduce the value of royalties for buyers paying higher prices, and the transfer of customizable tokens that could see, for example, NFTs limited to a number. of operations or be subject to a freezing of operations for a certain period of time.
Magic Eden moved to a optional royalty model in October, allowing buyers the option to set the royalties they want to contribute to projects, which divided opinion in the NFT community on Twitter.
The OCP tool follows a similar chain tool released in early November by OpenSea that restricted NFT sales to only marketplaces that charged royalties.
Magic Eden created a similar royalty enforcement toolMetaShield, in partnership with aggregator and peer marketplace Coral Cube in September before moving to optional royalties.
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