Magic Eden, a multi-chain NFT marketplace, has unveiled plans to introduce a new Ethereum platform in collaboration with Yuga Labs, the creator of the Bored Ape Yacht Club NFT collection. The platform will have a contractual obligation to pay creator royalties on NFT sales.
Magic Eden’s revamped Ethereum marketplace, expected to launch by year-end, will utilize new smart contracts to ensure royalties are automatically distributed during secondary market sales. While technical details will be disclosed closer to the launch, the standard ERC-721 Ethereum NFT standard will be employed, and NFTs with specific properties related to the marketplace contract will have royalties enforced.
This move aims to preserve the financial rights of creators, as some marketplaces have bypassed or reduced royalty payments in recent years due to changing market dynamics. It won’t alter how traders interact with Magic Eden and doesn’t necessitate know-your-customer (KYC) checks.
Yuga Labs expressed the importance of supporting creator royalties, emphasizing that they stand up for content creators in the NFT space. This initiative signifies a commitment to upholding the financial interests of creators and a distinction from marketplaces that have taken a different stance.
The partnership between Magic Eden and Yuga Labs is not exclusive, and they hope other marketplaces will adopt similar royalty-enforcement contracts. Additionally, other NFT creators can choose to mint their projects using these contracts to provide creators with financial protection.
Magic Eden, previously known for its Solana-based marketplace, transitioned to optional royalties last year and launched an Ethereum NFT marketplace in 2022. This strategic shift demonstrates their dedication to supporting creators and preserving royalties in the evolving NFT landscape.
The partnership not only strengthens financial protections for NFT creators but also underscores the significance of royalties within the NFT market. The collaboration between Magic Eden and Yuga Labs presents a forward-thinking approach to ensure creators receive their rightful royalties, setting a positive example in the industry.
This development opens a new chapter in the NFT space, enhancing the financial security and rights of creators and reshaping the way royalties are handled within the industry.
