Yuga Labs and Magic Eden have unveiled an exciting collaboration to introduce the Magic Eden Ethereum Marketplace, set to be launched before the year’s end.
In a press release issued on Saturday, both companies revealed that the Magic Eden Marketplace will distinguish itself as the first prominent Ethereum marketplace committed to upholding creator royalties. They emphasized that this initiative underscores Yuga Labs’ and Magic Eden’s dedication to safeguarding creator royalties and advancing a model that encourages more innovators to join the space.
Yuga Labs, a digital asset and blockchain technology company based in Miami, also announced its intention to exclusively engage with marketplaces that demonstrate a commitment to respecting creator royalties and ensuring equitable treatment for creators in the future.
Yuga Labs CEO Daniel Alegre stated, “We view this partnership with Magic Eden as a victory for the entire ecosystem. Magic Eden is backing their words with action, and together we are fostering the development of an Ethereum marketplace that supports creators, who are indispensable to the existence of web3.”
In an interview with Decrypt, Jack Lu, one of the co-founders of the cross-chain NFT platform Magic Eden, elaborated on the upcoming Ethereum marketplace’s technical advancements. The revamped marketplace will integrate cutting-edge smart contracts, serving as the underlying code for decentralized applications (dApps). These technical upgrades have been specifically designed to ensure the proper distribution of royalties in secondary market transactions.
While more in-depth technical information will be disclosed closer to the marketplace’s launch in late 2023, Lu confirmed that the standard ERC-721 Ethereum NFT standard will be utilized. Additionally, NFTs minted with specific “properties of the marketplace contract” will have their royalties automatically enforced.
Importantly, Lu reassured that these modifications will not introduce any significant changes to the way traders interact with Magic Eden, meaning there won’t be any additional identity verification requirements like know-your-customer (KYC) checks.
Yuga Labs and Magic Eden’s announcement appears to contain a subtle critique of OpenSea, the largest NFT marketplace. They emphasized that “respecting creator royalties is non-negotiable,” taking a clear stance amidst a landscape where other marketplaces have been criticized for not prioritizing the interests of creative entrepreneurs.
This move follows Yuga Labs’ prior criticisms of OpenSea, first in late 2022 when OpenSea publicly indicated a possible shift away from creator royalties and again in August after OpenSea’s decision was finalized. Notably, the creator of Bored Ape Yacht Club had announced its intention to reduce support for OpenSea due to the platform’s decision to remove its on-chain royalty enforcement tool, Operator Filter.