Crypto Twitter split as another NFT platform moves to opt-in royalties

Magic Eden, a Solana-based NFT marketplace, has adopted an optional royalty model. This follows in the footsteps of X2Y2’s August shift, though reluctantly.

The optional royalty model gives buyers the ability to decide how much they would like to contribute to NFT projects. This means that creators might not get royalties when their artworks sell.

NFT Marketplace noted in an Oct. 14 posting that the marketplace made the decision after “difficult reflection” and “discussions with many creators”, and as the market has been shifting toward optional creator royalties for a while.

NFT marketplace shared this graph that shows how the number of cumulative wallets that use optional royalty marketplaces to purchase or sell NFTs soared in September.

4/ Since a while, the market has been moving towards creator royalties. These charts show the cumulative wallets that used optional royalty marketplaces for NFT purchases or sales. pic.twitter.com/wxiU800l2P
— Magic Eden (@MagicEden), October 15, 2022

The Twitter NFT community has had split opinions about the move. Some see it as positive for the industry’s long-term health, while others view skipping royalties to be akin “theft.”

Mike “Beeple”, a well-known NFT artist, pointed out to his 700,000. followers Oct. 15, that while he doesn’t love Magic Eden or what others are doing it, the change from a seller’s fee to a buyers premium could be better for long-term industry.

While I don’t support @MagicEden’s royalties, I do believe there is a key change they made: switching from a seller’s FEE to a buyer’s PREMIUM. I think this is much more sustainable in the long-term.
— beeple (@beeple), October 15, 2022

CaptainFuego, a Twitter user behind Fuego Labs, told their almost 10,000 followers that Royalties were stupid and shouldn’t exist. It’s great to see platforms adopt this approach.

Others were less supportive of the changes. Brocolli DAO claimed that royalty payments are necessary in an immature ecosystem, noting that they have already lost $27,000 in royalties as a result of 0% sales on other marketplaces.

ROYALTIES: We have taken proactive steps to ensure the integrity of our project after Magic Eden announced that they would be making royalties voluntary. We have run analytics to determine how much we have lost in royalties to 0% sales on other marketplaces.
— Broccoli DAO October 15, 2022 (@Broccoli_DAO).

“In the future, we will block anyone who hasn’t paid royalties from accessing Discord channels. It is theft to not pay royalties. They said that they would treat it as such.

Cozy the Caller, an analyst who claims to be a psychic, predicted a dire scenario to their 108,000 followers. He stated, “I can see Magic Eden going 0% and losing their market share to a market enforcing royalty payments in an innovative manner.”

It’s truly unbelievable. I don’t know the person advising magic Eden, but I can imagine him fumbling with a billion-dollar company man. I can envision a scenario where magic eden goes to 0% and loses market share to a market enforcing royalty in an innovative manner.
October 15, 2022 — Cozy the Caller (@cozypront).

Magic Eden stated that the change was not made lightly and they had “actively been trying to avoid it and spent the last few days exploring other options.”

The NFT marketplace tried to create a tool to enforce royalty payments called Meta Shield. This tool was designed to deter NFT buyers from trying to avoid creator royalties. It allowed creators to flag and blur NFTs sold without royalties.

Magic Eden stated in its most recent post: “Unfortunately royalties aren’t enforceable at a protocol level. So we had to adapt to changing market dynamics.”

NFT marketplace X2Y2 announced in August that they would be offering a similar option where buyers can set the royalty fees when purchasing an NFT.

This move appears to not have had an impact on the platform’s use; NFTGo data shows that X2Y2’s trading volume has risen to the top, surpassing OpenSea’s in the last three month.

NFT marketplace trading volume data. Source: NFTGO

Cointelegraph reached out to Magic Eden, but did not receive a response as of publication.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Jason Basler

Jason Basler– Financial Updates My Name is Jason Basler and I am also the main source from the ‘Topnewsscoop.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor. Address: 4830 Crim Lane Dayton, OH 45402, United States of America Phone Number:  +1 937 727 7917 Email: [email protected]

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Close Bitnami banner
Bitnami