Magic Eden’s Co-Founder Proposed A New NFT Standard To Enforce Royalties
Magic Eden co-founder Jack Lu has proposed a new NFT standard that will enforce royalties on a technical level. Jack Lu believes that the implementation of this standard is expected to create a new asset class to support those who want royalties or a new business model.
On November 7, speaking at Solana’s Breakpoint conference in Lisbon, Portugal, Jack Lu, co-founder and CEO of Magic Eden, advocated for a new NFT standard that would enforce royalties in technical level.
Jack Lu believes that the implementation of this standard is expected to create a new asset class to support those who want royalties or a new business model.
“There is a real opportunity to give rise to a new asset class,(…), dozens of creators amongst many, many industries.(…). Some folks really want sovereign ownership, [while] some folks really want royalty enforcement or new business models,”Jack lu said
Magic Eden spoke with dozens of industry creators for their input. However, Jack Lu warns that the new NFT standard will present users with some special trade-offs, adding that enforcing royalties means creators can only have one degree of control and certain, but not all, ownership rights, as the NFT required royalties would be different from the NFT we understand today.
“The holders will need to give up some level of control, or freehold ownership of these NFTs in favor of the creator,”Lu explained
In early October, Magic Eden enabled optional royalties, allowing NFT buyers to choose full, half, or no royalties.The move follows in the footsteps of other prominent NFT marketplaces, which have implemented optional royalty payments to attract more users.
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