Yes Friends At this time, personal safety and security matters a lot, which may cause dependence and gross instability to the world economy due to the critical state of the world economy. First, the U.K. Russia war situation takes a dire shape.And now a new war has started between Palestine and Israel in the Middle East. Due to this war the economic situation has become more complicated. But right now I see a good market for cryptocurrencies.
News NFTs
Nov 4, 2023
6 min read
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Hive is up 4% right now it's awesome the bulls are running I'm getting behind it!
Magic Eden’s new Ethereum NFT marketplace will be “contractually obligated” to pay royalties. What does that mean for traders?
By
Multi-chain ++NFT++ marketplace ++Magic Eden++announced Saturday that it will launch a new ++Ethereum++ platform by the end of the year in collaboration with ++Bored Ape Yacht Club++ creator Yuga Labs—with a firm commitment to honor creator royalties on NFT sales.
The companies said in a statement that Magic Eden will have a “contractual obligation” to pay Yuga Labs its share of secondary market sales of its future NFT collections.
“We’re very much happy to put our money where our mouth is,” Magic Eden co-founder and CEO Jack Lu told Decrypt.
Lu said that Magic Eden’s overhauled Ethereum marketplace would use new ++smart contracts++—which contain the code that powers ++decentralized apps++ (dapps)—with technical innovations that it says will ensure that royalties are paid out during secondary market sales.
Technical details will be revealed before the marketplace launches, but Lu did confirm that the standard ERC-721 Ethereum non-fungible token (NFT) standard will indeed be in use. NFTs minted with certain “properties of the marketplace contract” will have royalties enforced.
The change will not impact the way that traders interact with Magic Eden, Lu said; for example, it does not mean that they’ll have to identify themselves via know-your-customer (KYC) checks.
Royalties disputes
A ++creator royalty++ is a small fee set by the artist or company behind a project and taken from the sale price of any follow-up sale of an NFT. The fee typically ranges between 2.5% and 10% of the sale price, and such fees had initially been widely honored by marketplaces as a way for creators to benefit long-term from their tokenized creations.
But in the second half of 2022, with NFT sales fading, some upstart marketplaces began using workarounds to ++let traders skip such creator fees++, or pay smaller amounts. Major players then followed suit to keep pace, and prominent marketplace OpenSea ultimately decided to ++stop enforcing royalties this past August++ after ++previously committing to honor such fees++.
Yuga Labs ++criticized OpenSea in late 2022++ when it publicly said it had considered moving away from royalties and ++came out swinging again this past August++ after the decision was finalized. The Bored Ape creator said that it planned to stop supporting OpenSea’s marketplace contracts with new collections and those collections with upgradeable contracts.
“Obviously, the genesis of this was what we saw happening in the overall ecosystem with secondary royalties,” Yuga Labs CEO Daniel Alegre told Decrypt. “The gauntlet that unfortunately OpenSea dropped made it very clear to us that we, as a company at the forefront of the NFT space, had to stand up for content creators.”
A press release from Yuga Labs and Magic Eden announcing the news appears to subtly jab at OpenSea, noting that the companies have “made it unequivocal that respecting creator royalties is non-negotiable, a clear stance amidst a sea of other marketplaces who turn their backs on creative entrepreneurs.”
“Going forward, for new collections, Yuga Labs will exclusively engage with marketplaces that uphold these principles, ensuring fair treatment of creators,” the release notes.
Alegre said that Magic Eden—which is also ++in a working group with Yuga Labs in OMA3++ (the Open Metaverse Alliance of Web3) to improve royalties standards—has pledged to address any loopholes or workarounds with this new technological solution.
And this isn’t an exclusivity deal with Magic Eden, either. The companies say that other marketplaces can choose to use the same kind of contracts introduced through this collaboration, and that Yuga Labs hopes to see them broadly adopted. Furthermore, other NFT creators can mint their projects using the contracts to adopt similar protections.
Shifting strategies
Magic Eden, best known for its original iteration on ++Solana++, is one of those aforementioned marketplaces that ++switched to optional royalties last year++ after pressure from rising rivals. The platform also ++launched an Ethereum NFT marketplace last fall++, but eventually took it offline ahead of the planned revival.
Lu acknowledged that Magic Eden “went through our own changes” in regards to royalties enforcement on Solana, but that it always wanted to support creators—it just wanted a “technical solution” for that. Such solutions ++have emerged on Solana++ over the past year, and now Magic Eden is among the builders trying to enact such standards on Ethereum, too.
https://decrypt.co/204403/bored-ape-creator-yuga-labs-magic-eden-launching-ethereum-nft-marketplace-enforces-royalties
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