Miami-based digital asset and blockchain technology company, Yuga Labs, has announced an exciting collaboration with Magic Eden to launch the groundbreaking Magic Eden Ethereum Marketplace by the end of this year. This move promises to make a significant impact on the world of Ethereum marketplaces, ensuring the protection of creator royalties and fostering innovation in the NFT space.
In a joint press release, Yuga Labs and Magic Eden proudly revealed that the Magic Eden Marketplace is set to become the very first Ethereum marketplace with a binding commitment to uphold creator royalties. They emphasized that this collaboration underscores their shared dedication to supporting creators and revolutionizing the NFT landscape.
Furthermore, Yuga Labs made a bold statement by declaring its intent to only engage with marketplaces that demonstrate unwavering respect for creator royalties and ensure equitable treatment for creators in the future.
Daniel Alegre, CEO of Yuga Labs, expressed his enthusiasm, stating, “We see this partnership with Magic Eden as a win for the entire ecosystem. Magic Eden is wholeheartedly backing their commitment with action, and together, we are championing the development of an Ethereum marketplace that empowers creators – the lifeblood of the web3 world."
Jack Lu, co-founder of Magic Eden, shared in an interview with Decrypt that the enhanced Ethereum marketplace will incorporate cutting-edge smart contracts, which serve as the foundation for decentralized applications (dApps). These advancements are meticulously designed to guarantee the seamless distribution of royalties in secondary market transactions, thus protecting creators' interests.
While more technical details are expected to be unveiled as the marketplace's late 2023 launch date approaches, Lu confirmed that the standard ERC-721 Ethereum NFT will be in use, and certain NFTs will have their royalties automatically enforced based on the "properties of the marketplace contract." Importantly, these enhancements will not impose additional identity verification measures such as know-your-customer (KYC) checks on traders, ensuring a user-friendly experience.
Yuga Labs and Magic Eden's joint announcement carried a subtle message, emphasizing the paramount importance of respecting creator royalties. This stance reflects their commitment in an environment where other marketplaces have faced criticism for neglecting creators.
Notably, Yuga Labs had previously criticized OpenSea, the largest NFT marketplace, for considering a move away from creator royalties in late 2022 and finalizing this decision in August. As a result, the creator of Bored Ape Yacht Club expressed its intention to phase out support for OpenSea following the removal of the on-chain royalty enforcement tool, Operator Filter. This partnership with Magic Eden signals Yuga Labs' commitment to a creator-first approach within the NFT ecosystem.
