Magic Eden is moving to an optional royalty system
The buyer will decide whether to pay royalties to the author of the token
The platform is also abolishing the 2% sales commission
On Saturday, October 15, the administration of NFT-marketplace Magic Eden announced changes to the system of royalties for authors. Royalty payments are now left at the discretion of the buyer. The platform has also done away with the mandatory 2% commission altogether.
“After lengthy discussions with some authors and careful deliberation, we have decided to change the royalty system on Magic Eden to an optional one. Also from today (October 15), we will stop charging for the platform’s services,” the statement said.
According to a Magic Eden spokesperson, this decision was not an easy one. The market is gradually shifting in favour of doing away with compulsory licence fees. And switching to the new system has become “a matter of survival” for ME.
By default, all new collections on the marketplace will be subject to a maximum licence fee. The customer can reduce them to half or forgo paying royalties altogether.
To stabilise the market, the platform will temporarily waive the 2% commission on each sale. Magic Eden also expressed the hope that the changes are temporary.
The platform is now working to prepare the first hackathon on copyright and royalty protection tools for NFT artists. The company intends to invest $1 million in a fund to sponsor such projects.
Magic Eden’s decision has sparked a flurry of criticism against the marketplace. Some users have called the royalty fee waivers “theft”, threatening to sever business ties with the marketplace.