Product
3.5 min read
Royalty protection for NFT on Magic Eden
December 2, 2022
Key points:
- SOL-based NFT marketplace Magic Eden has launched a new tool to secure royalty payments for a new series.
- The Open Creator Protocol will allow royalties to be enforced on new collections that opt into the SLP token standard.
- Creators have to destroy and remint their legacy collections to implement OCP.
- The dynamic license fee feature reduces the value of the royalties for buyers who pay higher prices.
Solana (SOL)-based non-fungible token (NFT) marketplace Magic Eden has launched a new tool to secure royalty payments for a new series. The tool, called the "Open Creator Protocol" (OCP), is open source and free. The Open Creator Protocol is built on top of Solana's SLP token standard. Beginning December 2, this will allow royalties to be enforced on new collections that opt into the standard.
If OCP users do not enforce royalties, they can prevent the marketplace from selling their work. Magic Eden will continue to offer optional royalty payments for collections that do not implement OCP. However, users cannot "retroactively apply" the OCP to an existing collection. So this means creators have to destroy and remint their legacy collections to implement OCP.
Additionally, the tool has a dynamic license fee feature. This reduces the value of the royalties for buyers who pay higher prices.
Jack Lu, co-founder, and CEO of Magic Eden said:
“We have been in active conversations with multiple ecosystem partners to identify solutions for creators in a timely manner. Our intention with Open Creator Protocol is to immediately support royalties for creators launching new collections while continuing to coordinate with ecosystem partners for more solutions.”
Additionally, the launch comes weeks after rival NFT marketplace OpenSea rolled out a similar tool for its clients.
Meanwhile, how is Solana doing?
SOL is one of the most affected projects in the FTX saga. The token continued to plummet, losing more than 50% on the monthly chart. Additionally, Solana’s volatility is at yearly highs, according to Messari.
On the other hand, the circulating market capitalization of SOL is at an annual low.
Source: Messari
The FTX debacle played a big role in Solana’s price drop. However, there are many use cases for the network, with over 350 projects built on top of it. Therefore, SOL has a good chance of getting out of its current predicament.
At press time, Solana was trading at $13.59, down 2.1% over the past 24 hours. Additionally, the token is down 94.8% from its all-time high of $259.96 reached in November 2021.
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