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Solana-based Magic Eden has become the latest NFT marketplace to follow in the footsteps of X2Y2 in August, albeit reluctantly, to move to an optional loyalty model.
An optional royalty model empowers buyers to set the royalties they wish to contribute to the NFT project.
on October 14th PositionNFT Marketplace noted that the decision was the result of “difficult reflection and discussion with many creators” and that “the market has been moving towards optional creator royalties for some time.”
The NFT Marketplace has shared a chart showing the number of cumulative wallets buying and selling NFTs using the Optional Loyalty Marketplace spiked in late September.
4/ The market has moved to optional Creator Loyalty for some time. These charts show cumulative wallets buying and selling NFTs using the optional Loyalty Marketplace. pic.twitter.com/wxiU800l2P
Magic Eden (@MagicEden) October 15, 2022
However, the move has received divided opinion from Twitter’s NFT community, with some seeing the move as positive for the long-term health of the industry and others making skipping royalties akin to “theft.” Some people think that
Renowned NFT artist Mike Beeple Winkleman wrote to his 700,000 followers on Oct. 15 that he doesn’t like what Magic Eden and others are doing, but that they’re going from seller’s commission to buyer’s premium. The switch to the industry long-term.
I’m clearly a royalist and don’t love anything @Magic Eden Others have done it, but there is one important change they came up with. A switch from FEE for the seller to PREMIUM for the buyer. I think this is actually much more sustainable in the long run…
Beeple (@Beeple) October 15, 2022
Another Twitter user named CaptainFuego behind Fuego Labs Said Their nearly 10,000 followers commented, “Loyalty is ridiculous and shouldn’t exist. I’m glad the platform is taking this approach.”
Others were more critical of the change. Broccoli DAO claimed Immature ecosystems need loyalty, pointing out that they have already lost $27,000 in royalties due to 0% purchases on other marketplaces, according to their calculations. increase.
royalty:
After Magic Eden’s announcement that it would make usage voluntary, we took aggressive steps to protect the integrity of the project.
We ran an analysis to determine how much loyalty was lost for 0% purchases on other marketplaces.
/1Broccoli DAO (@Broccoli_DAO) October 15, 2022
In the future, we will block anyone who has not paid royalties from accessing our Discord channel. Not paying royalties is theft. We treat it as such, they said. Told.
Self-proclaimed analyst Cozy the Caller Strict To his 108,000 followers, he said, “We can see a scenario where Magic Eden goes to 0% and loses market share to a market that enforces loyalty in innovative ways.”
It’s unrealistic to be honest I don’t know who advises magical eden but imagine groping the guy in the billion dollar company
We can see a scenario where Magical Eden goes to 0% and loses market share to a market that enforces loyalty in innovative ways
such a stupid man is unreal
Cozy he Caller (@cozypront) October 15, 2022
Magic Eden said the change was not taken lightly and that it was “actively trying to avoid this outcome and has been considering various alternatives over the past few weeks.”
Last month, the NFT Marketplace attempted to introduce a royalty enforcement tool called Meta Shield. This will discourage NFT buyers from trying to circumvent the creator’s royalties by giving the creator a tool that can flag and obscure her NFTs that have been sold bypassing the royalties. intended to prevent.
Magic Eden said in their latest post:
In August, NFT marketplace X2Y2 announced that it would introduce a similar option that would allow buyers to set royalty fees when purchasing NFTs.
The move does not appear to have affected usage of the platform.according to data On NFTGo, X2Y2’s trading volume overtook OpenSea to rank first in the past three months.
Cointelegraph reached out to Magic Eden for further comment, but did not immediately receive a response at the time of publication.
