{"id":14526,"date":"2022-10-17T05:27:15","date_gmt":"2022-10-17T05:27:15","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/crypto-twitter-split-as-another-nft-platform-moves-to-opt-in-royalties\/"},"modified":"2022-10-17T05:27:17","modified_gmt":"2022-10-17T05:27:17","slug":"crypto-twitter-split-as-another-nft-platform-moves-to-opt-in-royalties","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/crypto-twitter-split-as-another-nft-platform-moves-to-opt-in-royalties\/","title":{"rendered":"Crypto Twitter split as another NFT platform moves to opt-in royalties"},"content":{"rendered":"
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Solana-based Magic Eden has become the latest NFT marketplace to shift to an optional royalties model, following in the footsteps of X2Y2 in August, albeit reluctantly.\u00a0<\/p>\n

Under the optional royalties model, buyers are given the power to set the royalties they want to contribute to an NFT project, meaning there is a chance that some creators may not receive royalties when their artworks are sold.<\/p>\n

In an Oct. 14 post<\/a>, the NFT marketplace noted that the decision came after “difficult reflection and discussions with many creators\u201d and came as the \u201cmarket has been shifting towards optional creator royalties for awhile.\u201d <\/p>\n

The NFT marketplace shared a graph showing that the number of cumulative wallets using optional royalty marketplaces to buy or sell NFTs skyrocketed in late September. <\/p>\n

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4\/ The market has been shifting towards optional creator royalties for awhile. These charts shows the cumulative wallets that have used optional royalty marketplaces to buy or sell NFTs. pic.twitter.com\/wxiU800l2P<\/a><\/p>\n

\u2014 Magic Eden (@MagicEden) October 15, 2022<\/a><\/p><\/blockquote>\n

However, the move has been met with split opinions from Twitter’s NFT community, with some seeing the move as positive for the long-term health of the industry, while others have labeled skipping royalties as akin to “theft.”\u00a0<\/p>\n

Well-known NFT artist Mike \u201cBeeple\u201d Winkleman pointed out to his 700,000 followers on Oct. 15 that while he doesn\u2019t love what Magic Eden and others are doing, the switch from a seller\u2019s fee to a buyer\u2019s premium could be better for the industry long term.<\/p>\n

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while I am obviously pro-royalties and don\u2019t love what @MagicEden<\/a> and others are doing, I do think there is one key change that they hit on\u2026 switching from a sellers FEE, to a buyer\u2019s PREMIUM. i think this is actually much more sustainable long term\u2026 <\/p>\n

\u2014 beeple (@beeple) October 15, 2022<\/a><\/p><\/blockquote>\n

Another Twitter user named CaptainFuego, behind Fuego Labs\u00a0told<\/a>\u00a0their nearly 10,000 followers that \u201cRoyalties are stupid and shouldn’t exist. Glad to see platforms taking this approach.\u201d <\/p>\n

Others were more critical of the change. Brocolli DAO\u00a0argued<\/a>\u00a0that \u201croyalties are needed in an immature ecosystem,” noting that as per their calculations, they’ve already lost as much as $27,000 in royalties due to 0% purchases on other marketplaces.\u00a0<\/p>\n

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ROYALTIES:<\/p>\n

After Magic Eden’s announcement that they will be making royalties optional, we have taken proactive measures to protect the integrity of our project.<\/p>\n

We’ve run analytics and determined how much we’ve lost in royalties to 0% purchases on other marketplaces:
\/1<\/p>\n

\u2014 Broccoli DAO (@Broccoli_DAO) October 15, 2022<\/a><\/p><\/blockquote>\n

\u201cIn future we will be blocking anyone who hasn’t paid royalties from accessing our Discord channels. Not paying royalties is theft. We will treat it as such,” they said.\u00a0<\/p>\n

Cozy the Caller, a self-proclaimed analyst, made a grim<\/a> prediction to their 108,000 followers, stating \u201cI can see a scenario in which Magic Eden goes 0% and loses their market share to a marketplace enforcing royalties in an innovative way.”<\/p>\n

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honestly unreal I don’t know who is advising magic eden but imagine fumbling a billion dollar company man<\/p>\n

I can see a scenario in which magic eden goes 0% and loses their market share to a marketplace enforcing royalties in an innovative way<\/p>\n

such a fumble man unreal<\/p>\n

\u2014 Cozy \u24e3he Caller (@cozypront) October 15, 2022<\/a><\/p><\/blockquote>\n

Magic Eden said the change was not taken lightly, and they “have actively been trying to avoid this outcome and spent the last few weeks exploring different alternatives.”<\/p>\n

Last month, the NFT marketplace attempted to bring forth a royalty enforcement tool called Meta Shield, aimed at deterring NFT buyers trying to skirt creator royalties by giving creators a tool that could flag and blur NFTs that sold bypassing royalties. <\/p>\n

Magic Eden noted in its latest post that: \u201cUnfortunately, royalties are not enforceable on a protocol level, so we have had to adapt to shifting market dynamics.”<\/p>\n

In August, NFT marketplace X2Y2 announced they were introducing a similar option that allows buyers to set the royalty fee when buying an NFT. <\/p>\n

The move doesn’t appear to have affected the platform’s usage; according to data on NFTGo, in the last three months, X2Y2’s trading volume is ranked first, surpassing OpenSea. <\/p>\n

NFT marketplace trading volume data. Source: NFTGO<\/em><\/figcaption><\/figure>\n

Cointelegraph has reached out to Magic Eden for further comment but has not received an immediate response at the time of publication.\u00a0<\/p>\n<\/div>\n