- Magic Eden stated that it will eliminate its platform fee and introduce a new, customizable royalty structure
- According to the NFT market, the decision was made in light of the current market dynamics
- The dominance of Magic Eden over Solana NFT has been challenged by rivals more and more
The Solana-based NFT marketplace Magic Eden announced that it would eliminate the 2% platform fee on October 14 and switch to an optional royalty model.
The buyer has the option to choose how many royalties they will pay under the new optional incentive model. Buyers are free to choose whether or not to pay, as well as how much, despite the fact that all collections will by default honor full royalties.
The rationale for shifting royalties payments to the buyer is to ensure that the buyer has a full understanding of whether they are going to receive the benefits that creators provide (Discord, staking, etc.), Magic Eden wrote.
Magic Eden: Optional Royalties at the Solana NFT Marketplace Platforms
The NFT market acknowledged that the choice was difficult. Nevertheless, the dynamic shifts in the market forced its hand. A $1 million Creator Monetization Hackathon would also be launched, according to the Web3 company. New methods for creators to monetize their works on the platform will be the primary focus of the initiative.
Recently, Solana-based NFT marketplaces like X2Y2, Yawww, and Solanart introduced trading platforms that do not require users to pay royalties.
Other NFT projects, like DeGods, introduced the concept of 0% royalties to the market in addition to these marketplaces.
The community has been polarized as a result of the move; while some individuals expressed support for the brand-new model that the Solana NFT marketplace Magic Eden intends to implement, others criticized it for the way it treats creators.
According to Magic Eden, the number of wallets interacting with NFT marketplaces with this optional royalties model has increased.
How is the Solana NFT market doing now?
In light of the most recent developments in the area, Magic Eden’s dominance of the Solana marketplace appears to be waning.
Six months ago, Magic Eden controlled 89% of Solana NFT market volumes, according to Tiexo data. However, as of press time, that percentage has decreased to 69%.
At the same time, the volume of NFT marketplaces with optional royalty models like Solanart increased from 1.66 percent to 6.62 percent as of press time.
DappRadar data indicates that the number of distinct active wallets interacting with Magic Eden increased by 37.52 percent over the past 30 days, despite these platforms’ progress.22.24 million transactions were also processed at the Solana market.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.