The new marketplace will be “contractually obligated” to pay royalties to NFT creators for secondary sales.
2 min read
Updated: November 4, 2023 at 5:41 pm
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Cross-chain non-fungible token (NFT) platform Magic Eden has partnered with Bored Ape Yacht Club (BAYC) creator Yuga Labs to launch a new Ethereum marketplace, according to a press release on Nov. 4.
The new marketplace—to be launched by the end of 2023—will focus on royalties to uphold the principle of ownership and empower creators to “continue receiving royalty payments for their original work.”
NFT creator royalty is a percentage of the sales price that the original creator of an NFT receives every time it is sold or transferred to a new owner. It allows creators to continue earning from their digital assets as they change hands in the secondary market, providing an ongoing source of income and incentivizing artists and content creators to participate in the NFT space.
Magic Eden co-founder and CEO Jack Lu noted in the statement:
“We remain committed to the betterment of the web3 creator ecosystem, steadfast in our belief that we should champion creators who are the heart and soul of the industry… Right now, it’s a priority to provide creatives with the support they deserve with creator royalty programs.”
The press release claimed that the new platform will be the first major Ethereum NFT marketplace that is “contractually obligated” to pay royalties to creators for secondary sales. The “unified vision” of the companies involves “creating a fair and rewarding ecosystem for imaginative content contributors.”
Creator royalties are non-negotiable
Magic Eden and Yuga Labs have unequivocally announced that “respecting creator royalties is non-negotiable.” Therefore, Yuga Labs will exclusively work with marketplaces that pay royalties for all its future collections, according to the press release.
Both firms emphasized that the new Ethereum-based platform will be a testament to their long-term “commitment to protecting creator royalties.” The jointly launched platform will also aim to encourage innovation by boosting the number of builders and creators.
Daniel Alegre, CEO of Yuga Labs, said:
“Magic Eden is putting their money where their mouth is, and together we are supporting the building of an Ethereum marketplace that will back creators, without whom web3 would not exist.”
Lu added that the new marketplace will “reset” the royalty allocation standard and hopes that its principles will be adopted throughout the ecosystem.
In a post on X, Lu also noted that Magic Eden has already “managed to solve” the problem of royalties on Solana. The firm partnered with Metaplex, the protocol that enables NFT minting on Solana, to roll out royalty protection protocols.
“Now, Royalties are the norm on SOL. And we believe we can do the same on Eth.”
Open taunt to OpenSea
The press release seemingly taunted OpenSea, one of the largest NFT marketplaces that made royalties optional in August. Highlighting their firm stance in favor of royalties, Yuga Labs and Magic Eden noted that they have “a clear stance amidst a sea of other marketplaces who turn their backs on creative entrepreneurs.”
Yuga Labs has publicly criticized OpenSea’s stance on royalties before. In August, Yuga Labs said it would shortly end support for Seaport, OpenSea’s marketplace contract, indicating that its NFTs will not be available on the marketplace in the future.
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