In a significant development, Yuga Labs has partnered with Magic Eden to introduce the Magic Eden Ethereum Marketplace, scheduled to launch before the end of the year. This collaboration aims to establish the first major Ethereum marketplace with a contractual obligation to protect creator royalties. Yuga Labs and Magic Eden are committed to innovating on a model that prioritizes creator royalties and encourages more builders to enter the space.
“We see this partnership with Magic Eden as a win for the whole ecosystem,” stated Yuga Labs CEO Daniel Alegre. “Magic Eden is demonstrating their commitment by ensuring creators are supported, which is vital for the existence of the web3.”
Enhanced Ethereum Marketplace with Smart Contracts
In an interview with Decrypt, Jack Lu, co-founder of cross-chain NFT platform Magic Eden, explained that the revamped Ethereum marketplace will incorporate cutting-edge smart contracts. These smart contracts house the underlying code for decentralized applications (dApps) and will be instrumental in guaranteeing the distribution of royalties in secondary market transactions.
More technical details about the marketplace will be revealed closer to its late 2023 launch date. However, Lu confirmed that the standard ERC-721 Ethereum NFT will be utilized, and NFTs minted with specific properties of the marketplace contract will have their royalties enforced.
Importantly, these modifications will not introduce additional identity verification measures such as know-your-customer (KYC) checks, ensuring a seamless trading experience for users.
A Stance on Respecting Creator Royalties
Yuga Labs and Magic Eden’s collaboration emphasizes the importance of respecting creator royalties, highlighting a clear contrast with other marketplaces. The companies expressed their stance on this issue and criticized OpenSea, the largest NFT marketplace. The press release made it clear that respecting creator royalties is non-negotiable, in direct opposition to marketplaces that neglect creative entrepreneurs.
Yuga Labs had previously called out OpenSea’s intention to abandon creator royalties in late 2022 and again in August after this decision was finalized. As a result, Yuga Labs plans to discontinue support for OpenSea following the removal of its on-chain royalty enforcement tool, Operator Filter.
“Respecting creator royalties is non-negotiable, a clear stance amidst a sea of other marketplaces who turn their backs on creative entrepreneurs.”
By collaborating with Magic Eden, Yuga Labs aims to establish a groundbreaking Ethereum marketplace that supports and protects creators, fostering an environment where innovation can thrive.
