Magic Eden makes NFT royalties optional on its marketplace

Solana’s biggest NFT marketplace Magic Eden, has changed its NFT royalty system; switching from a mandatory creator-set royalty system to an optional one where buyers can set the amount they want to pay – half, full, or nothing.

Previously, when an NFT was sold on Magic Eden, the seller paid a cut as royalty to the original creator. Its new system gives buyers the freedom to pay royalties (or not) and how much they want to pay.

The platform announced the news on Twitter last Friday, saying it made the decision after 'some difficult reflection and discussions with many creators.'

Apparently, Magic Eden’s new decision was influenced by market dynamics and competitors challenging its dominance within the Solana ecosystem. In its tweet, Magic Eden said, 'the market has been shifting towards optional creator royalties for a while.'

The announcement had the Solana NFT community split, with some in support and others criticising the move. 

Even famous NFT artist Beeple commented that while he is pro-royalty, Magic Eden’s move is 'much more sustainable long term.'

Broccoli DAO argued otherwise, saying, 'royalties are needed in an immature ecosystem.' The project claimed it had lost about US$27,000 due to 0% royalty purchases and believes “not paying royalties is theft.'

Despite all of this, Magic Eden is still pro-royalty and hopes its decision is not a permanent one. It says it is open to new standards that protect royalties and even announced a million-dollar-prize hackathon 'to develop pro-royalty & alternative creator monetisation tools.' 

Although the optional royalty trend is rapidly gaining ground among Solana marketplaces, Fractal – a gaming NFT platform – and artwork marketplace Exchange Art say they are holding their ground and keeping creator royalties. 

Photo: Magic Eden