Magic Eden Floats Code to Enforce Creator Royalties

The Solana-based NFT platform Magic Eden has introduced a suite of tools to enforce creation fees known as royalties into the hands of creators of new Non-fungible Tokens (NFTs) collection.

The tool dubbed “Open Creator Protocol (OCP)” is an open-source tool. Creators of new Solana NFT projects will ensure royalties are paid anytime their assets are traded on the marketplace. Majorly, creators’ royalties are the fees paid by sellers on NFT trades. The fees are between 5%-10% of the selling price and once paid, go into a digital wallet monitored by the inventors of the project.

Interestingly, the fees will help serve as a source of income for the NFT marketplace. With the OCP, NFT creators are allowed to cut out marketplaces that would not comply with the royalty fees, hence NFT won’t be traded through them.

Furthermore, creators will be entitled to the benefits of using the protocols to protect their royalties. Also, without a doubt creators that intend to launch new collections will be enabled to initiate their own rules for their collections.

Starting today, the OCP will be available to creators and supported by any Solana NFT marketplace who desire royalties on OCP projects.

Aside from other benefits, the OCP tool has a special feature that allows the reduction of fees paid by customers for high-priced NFTs. This in turn makes royalties less expensive to purchase. In addition, there will be free gift boxes today on the platform ranging from MacBook laptops and many more incentives.

Beyond Magic Eden: Other Marketplaces Introduce Tools for Creators

Aside from Magic Eden, OpenSea, an NFT marketplace, also introduced royalties for creator fee on-chain enforcement on the new collection last month. Additionally, the NFT marketplace will give out additional tools and enhance the on-chain enforcement while communicating with the community for positive feedback regarding the tools.

Meanwhile, Magic Eden in October announced its transition to an optional royalty model with its plan to run a promotion in order to waive its platform fees. Although the platform hopes the decision isn’t permanent, the fact that almost 60% of NFT traders currently use royalty-optional platforms made it unable to do anything contrary.

Magic Eden, a leading marketplace on the Solana blockchain, is controlling over 90% of the trade volume on the network making it in direct competition with the NFT marketplace leader OpenSea.