Metaplex Plans To Launch A New NFT Asset Class For Creator Royalties
Metaplex is building a new asset class that will enable creators to enforce royalties at the protocol level by extending the Token Metadata program, which powers up 99% of all NFTs on Solana.
In the midst of the continuing controversy about creator royalties, Metaplex made the announcement, stating it is building a new asset class that will enable creators to enforce royalties at the protocol level.
Creator royalties have recently gone out of favor in the Solana NFT industry, with major marketplace Magic Eden making them optional last week as royalty-averse competitors seized market share. Metaplex, the company that created Solana’s NFT standard, claims it is working on a new standard that will impose royalty payments across the board.
While artists and producers may define their royalty rates using project smart contracts, markets can work around them and ultimately decide whether or not to honor them.
By doing so, NFT traders avoid fees ranging from 5% to 10% on each sale. While this has angered project developers relying on such payments for revenue, NFT royalties are presently not enforceable under the existing Solana standard.
According to the company, the present Metaplex standard has been adopted by more than 99% of the Solana NFTs that have been issued so far. Metaplex stated that it could produce enforceable royalties by expanding its token metadata program, which is how NFT makers insert data and information that distinguishes NFTs (or blockchain tokens reflecting ownership in an object).
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