Magic Eden, has become the latest platform to release a tool allowing creators to enforce royalties on their collections.
It follows the announcement of a similar tool from rival NFT marketplace OpenSea in early November. According to a statement, the open-source royalty enforcement tool is built on top of Solana’s SPL token standard and is called the Open Creator Protocol. This will allow royalty enforcement for new collections that opt-in to the standard.
Creators who use OCP will also be able to ban marketplaces that have not enforced royalties on their collections. Magic Eden will still maintain optional royalties on its platform for collections that do not adopt OCP. Magic Eden said it can’t retroactively apply OCP to existing collections, telling creators they will have to conduct burn and re-mints” where the NFTs are sent to an unrecoverable wallet address and re-issued by the collection.
An additional feature of the protocol touted by Magic Eden is the ability for creators to introduce dynamic royalties that could reduce the value of royalties of buyers who pay higher prices and customizable token transferability which could see, for example, NFTs limited to a number of trades or be subject to a trade freeze for a set period of time.
Magic Eden moved to an optional royalties model in October allowing buyers the option to set the royalties they wish to contribute to projects, which split opinions in Twitter’s NFT community.
