Cross-chain non-fungible token (NFT) platform Magic Eden is teaming up with Bored Ape Yacht Club (BAYC) maker Yuga Labs to launch a new Ethereum marketplace, according to a press release on November 4.
The new marketplace – set to launch in late 2023 – will focus on royalties to uphold the principle of ownership and allow creators to “continue to receive royalty payments for their original work.”
NFT creator royalties are a percentage of the sales price that the original creator of an NFT receives each time it is sold or transferred to a new owner. It allows creators to continue earning from their digital assets as they change hands on the secondary market, providing an ongoing source of income and incentivizing artists and content creators to participate in the NFT space.
Jack Lu, co-founder and CEO of Magic Eden, noted in the statement:
“We remain committed to improving the Web3 creator ecosystem, steadfast in our belief that we must support creators who are the heart and soul of the industry… Right now, a priority is to provide the support for creatives who they earn from creator royalty programs.”
The press release claims that the new platform will be the first major Ethereum NFT marketplace that is “contractually obligated” to pay royalties to creators for secondary sales. The companies’ “unified vision” includes “creating a fair and rewarding ecosystem for resourceful content contributors.”
Creator royalties are non-negotiable
Magic Eden and Yuga Labs have unequivocally announced that “respecting creator royalties is non-negotiable.” Therefore, Yuga Labs will only work with marketplaces that pay royalties on all its future collections, the press release said.
Both companies emphasized that the new Ethereum-based platform will be a testament to their long-standing “commitment to protecting creator royalties.” The jointly launched platform will also aim to stimulate innovation by increasing the number of builders and makers.
Daniel Alegre, CEO of Yuga Labs, said:
“Magic Eden puts their money where their mouth is, and together we support the building of an Ethereum marketplace that will support creators, without whom web3 would not exist.”
Lu added that the new marketplace will “reset” the standard for royalty allocation and hopes its principles will be adopted across the ecosystem.
In a after on X, Lu also noted that Magic Eden has already “solved” the Solana royalty issue. The company partnered with Metaplex, the protocol that powers NFT coins on Solana, to roll out royalty protection protocols.
“Now royalties are the norm on SOL. And we believe we can do the same on Eth.
Open mockery for OpenSea
The press release appeared to taunt OpenSea, one of the largest NFT marketplaces that made royalties optional in August. Yuga Labs and Magic Eden emphasized their firm stance in favor of royalties, noting that they “take a clear stand amid a sea of other marketplaces that are turning their backs on creative entrepreneurs.”
Yuga Labs has previously publicly criticized OpenSea’s position on royalties. In August, Yuga Labs said it would soon end support for Seaport, OpenSea’s marketplace contract, indicating that the NFTs will not be available on the market in the future.