Solana NFT marketplace Magic Eden has updated its position on creator royalties, saying that it is launching a protocol that will enforce royalties on all new collections that use the tool.
The Open Creator Protocol is an open-source tool built on top of Solana's SPL managed-token standard and will give creators the choice of whether they want to have royalties protected on new collections. From December 2 onwards, Magic Eden will enforce royalties on all collections that adopt the standard and will give creators the option of banning marketplaces that don't enforce royalties. If creators don't adopt OCP for their NFTs, royalties will remain optional on the platform. Magic Eden's OCP appears to be similar in approach to OpenSea’s recent Ethereum toolkit.
In addition, OCP offers dynamic royalties, a feature that outlines a relationship between an NFT's sale price and royalty amount based on a linear price curve, along with customisable token transferability, which allows creators to gamify the rules of their collection's trading behaviour.
Magic Eden clearly followed OpenSea that also took a clear stance just recently against making royalties optional. The popular platform NFT platform X2Y2 also switched from optional royalties to enforcing them after receiving massive pushback. NFT marketplace Exchange.Art launched a new standard called the “Royalties Protection Standard," which ensures royalties are enforced on secondary sales of NFTs that originate on its platform. It’s great that NFT platforms finally have come to understand the importance of honouring creators and working together. We continue to observe.
