Magic Eden Launches Tool To Enforce Royalties For NFT Collections
Magic Eden has become the latest platform to deploy a solution that allows authors to impose royalties on their collections.
According to a statement, the Open Creator Protocol (OCP) is an open-source royalties enforcement tool built on Solana’s SPL token standard. Starting on December 2, new collections that opt-in to the standard will be able to impose royalties.
Creators who utilize OCP will also be able to block markets that do not receive royalties on their works. Magic Eden will continue to provide optional royalties on its platform to collections that do not use OCP.
At Solana’s Breakpoint 2022 conference on November 5, Jack Lu, CEO and Co-Founder of Magic Eden, raised the notion of NFTs meant to enforce royalties.
Magic Eden switched to an optional royalties model in October, giving consumers a choice to decide the royalties they want to contribute to projects, which divided the NFT community on Twitter.
The OCP tool is similar to an on-chain tool published by OpenSea in early November that restricted NFT sales to only markets that enforce royalties.
Before moving to optional royalties, Magic Eden developed a comparable royalty enforcement mechanism, MetaShield, in collaboration with peer marketplace and aggregator Coral Cube in September.
Magic Eden is the most popular NFT marketplace on the Solana blockchain. Launched on September 17 of 2021, it was created as a marketplace competitor that could act as a home base for NFT collections on SOL.
The platform is widely heralded for three things: the simplicity of its tools, its focus on community, and the diversity of tokens that can be created and collected on the platform (but more on this later).
In June 2022, Magic Eden raised $130 million at a valuation of $1.6 billion. It goes without saying that this is a major feat for any startup, let alone one in the blockchain industry. And the raise was doubly impressive given that NFTs and crypto had been on a downward slump for the majority of 2022.
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