Magic Eden Tweaks Royalty Model to Maintain Solana NFT Dominance

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Mag­ic Eden, a Solana-based NFT mar­ket­place, revealed it was switch­ing to an option­al roy­al­ty mod­el and said it would waive the 2% plat­form fee from Oct 14.

The new option­al incen­tiviza­tion mod­el allows the buy­er to deter­mine the num­ber of roy­al­ties they will pay. While all col­lec­tions will hon­or full roy­al­ties by default, buy­ers have the option decide whether to pay and how much.

Mag­ic Eden wrote that, its “ratio­nale for shift­ing roy­al­ties pay­ments to the buy­er is to make sure the buy­er has full under­stand­ing of whether they are going to receive the ben­e­fits that cre­ators pro­vide (Dis­cord, stak­ing, etc.).”

The NFT mar­ket­place con­ced­ed that the deci­sion was not easy. Still, the shift­ing mar­ket dynam­ics forced its hand. The Web3 com­pa­ny added that it would also launch a $1 mil­lion Cre­ator Mon­e­ti­za­tion Hackathon. The ini­tia­tive will focus on devel­op­ing new ways for cre­ators to mon­e­tize their works on the platform.

Magic Eden: Solana NFT Marketplace Optional Royalties

Recent­ly, Solana-based NFT mar­ket­places like X2Y2, Yawww, and Sola­nart launched plat­forms that allow users to trade NFTs with­out pay­ing roy­al­ties. Apart from these mar­ket­places, oth­er NFT projects like DeGods also intro­duced the con­cept of 0% roy­al­ties to the market.

The move has divid­ed the com­mu­ni­ty, with some show­ing sup­port for the new mod­el the Solana NFT mar­ket­place Mag­ic Eden wants to imple­ment while oth­ers crit­i­cized it for its treat­ment of creators.

Mag­ic Eden revealed that NFT mar­ket­places with this option­al roy­al­ties mod­el had seen an increase in the num­ber of wal­lets inter­act­ing with their platform.

What is the State of the Solana NFT Market?

Mag­ic Eden dom­i­nance of Solana mar­ket­place appears to be wan­ing in light of the lat­est devel­op­ments in the space. Accord­ing to data from Tiexo, Mag­ic Eden con­trolled 89% of Solana NFT mar­ket vol­umes six months ago. But that fig­ure has dropped to 69% as of press time.

Mean­while, NFT mar­ket­places with option­al roy­al­ty mod­els like Sola­nart saw their vol­ume rise from 1.66% to 6.62% as of press time.

Magic Eden NFT Solana Transaction Volume
Source: Dap­pRadar

Despite the progress made by these plat­forms, Dap­pRadar data shows that the num­ber of unique active wal­lets inter­act­ing with Mag­ic Eden rose by 37.52% over the last 30 days. The Solana mar­ket­place also processed 22.24 million.

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