Yuga Labs and Magic Eden Team Up for the Launch of an Ethereum NFT Marketplace Emphasizing Royalty Compliance

Crypto News- Multi-chain NFT marketplace, Magic Eden, has unveiled an ambitious collaboration with Yuga Labs, the creators of the iconic Bored Ape Yacht Club. The primary objective of this partnership is the launch of a groundbreaking Ethereum NFT platform, scheduled to debut by the end of this year, which will put a strong emphasis on the enforcement of creator royalties during NFT sales.

Yuga Labs and Magic Eden Team Up for the Launch of an Ethereum NFT Marketplace Emphasizing Royalty Compliance

This initiative, while poised to make a significant impact on the NFT landscape, is rooted in a commitment to addressing an issue that has been gaining attention recently—the declining adherence to creator royalties within the NFT market. Creator royalties represent a small percentage of the resale value of NFTs, designed to provide long-term benefits to the artists or companies behind these digital creations. Traditionally, these fees ranged between 2.5% to 10% of the sale price, but some newer NFT marketplaces started finding ways to circumvent or reduce these creator fees as NFT sales slowed down in the latter half of 2022.

The decision by established players to follow suit in a bid to stay competitive, and OpenSea’s announcement to halt the enforcement of royalties in August after initially committing to them, stirred controversy. Yuga Labs, particularly well-known for its Bored Ape collections, was vocal in criticizing OpenSea’s stance and announced plans to discontinue support for OpenSea’s marketplace contracts in favor of those upholding royalty principles.

Magic Eden, recognized for its presence on Solana, was also among the platforms that made a transition to optional royalties, reflecting the evolving dynamics of the NFT space. However, this move was motivated by the platform’s quest for a technical solution to support creators and ensure their rights were protected, rather than a reluctance to do so.

As part of their collaboration, Magic Eden and Yuga Labs are dedicated to implementing innovative smart contracts in their Ethereum marketplace to guarantee the enforcement of royalties during secondary market sales. While specific technical details of this solution will be unveiled closer to the marketplace’s launch, it has been confirmed that the standard ERC-721 Ethereum non-fungible token (NFT) standard will be employed. NFTs minted with certain properties will have royalties automatically enforced.