The Magic Eden marketplace introduces optional royalty payments and removes the 2% platform fee. And to support the creators, the site launched the Creator Monetization Hackathon worth one million dollars.
Magic Eden users can now choose whether or not to pay royalties when purchasing NFTs. They will set the royalty rate in various ways, including the ability to pay royalties in full, in half, or not at all.
Magic Eden said this decision was not easy for them because this initiative would affect the creators. Shortly after the announcement, the NFT community reacted strongly to the site’s new policy. Many are predicting the imminent collapse of Magic Eden.
Magic Eden has announced the Creator Monetization Hackathon, in which the platform will work with creators to find solutions to enforce the collection of royalties. In addition, alternative ways of monetizing copyrighted works on the site will be considered.
Royalty payments to creators have been an integral part of the NFT ecosystem. The author of the work received a percentage of each subsequent resale. Many sites allow creators to determine the percentage of royalties themselves. It usually ranges from 3%-10% of the NFT value.
The complete refusal of royalties has caused a flurry of criticism from the community, even in the case of X2Y2, which decided to exempt some purchases from royalties. Many then reminded X2Y2 of the significance of NFTs for artists and how many creators have moved into the space due to more lucrative and fairer payouts.
Previously, the DeGods project introduced a 0% royalty policy. Its creators call this move their best decision in the business.
Amid these controversies, Magic Eden introduced a non-binding royalty policy, adding that it is necessary:
