- Magic Eden, a Solana NFT marketplace, is partnering with Yuga Labs to launch a new Ethereum NFT marketplace by end of 2023 that will enforce creator royalties.
- This comes after Magic Eden previously made royalties optional, which upset many in the NFT community. Yuga Labs has seen revenues fall on OpenSea since it went royalty-free.
- The new marketplace will be the first major on Ethereum to require enforcing creator royalties. Details are still scarce but it aims to address concerns around royalty payments.
Magic Eden, a Solana-based NFT marketplace, has announced a partnership with Yuga Labs, the company behind popular NFT collections like Bored Ape Yacht Club and CryptoPunks. Together, they will launch a new Ethereum NFT marketplace by the end of 2023 that is contractually obligated to enforce creator royalties. This comes after Magic Eden previously made royalties optional, sparking backlash.
Background on Magic Eden’s Royalty Policy
Last year, Magic Eden announced it would make paying royalties optional for NFT sellers, likening it to a “prisoner’s dilemma” situation. This outraged many in the NFT community. More recently, the motivation for the new Yuga Labs partnership is clear – Yuga Labs has seen revenues plummet on OpenSea since it shifted to a royalty-free model.
Details on Upcoming Marketplace
The upcoming Magic Eden and Yuga Labs marketplace will be the first major Ethereum NFT marketplace that is contractually required to enforce creator royalties. Neither company has provided further details yet, but the marketplace is slated to launch by the end of 2023.
Conclusion
This partnership between Magic Eden and Yuga Labs signals a potential shift back towards enforcing royalties in Ethereum NFT marketplaces. It remains to be seen whether other major marketplaces will follow suit, but this new marketplace aims to address the concerns of creators and collectors around royalty payments.
