Magic Eden follows OpenSea with a tool that helps NFT artists get royalties from DailyCoin

• The Open Creator Protocol will allow artists to block marketplaces that do not respect royalties
• Magic Eden’s competitor OpenSea recently released a similar tool

Magic Eden, a Solana-based NFT marketplace, is pushing to help digital artists reap the rewards of their labor. The platform launched a tool to help NFT creators enforce royalties on their art.

“We are excited to launch the Open Creator Protocol, an open source, free, feature-rich tool built on its managed token standard in the SPL library, for creators to protect royalties on new collections,” Magic Eden wrote. The Open Creator Protocol will allow creators to manage marketplaces based on how they treat royalties.

“If marketplaces don’t honor royalties, creators will have the option to ban them from trading,” Magic Eden explained. The announcement comes after OpenSea, the largest NFT platform, launched a similar tool in November. OpenSea stated that it would begin enforcing NFT royalties set by creators. Before that decision, OpenSea allowed users to voluntarily decide whether to pay royalties to creators.

“It’s clear that many creators want the ability to enforce fees on-chain; and fundamentally, we believe that the choice should be theirs to make – it shouldn’t be a decision made for them by marketplaces,” Devin Finzer, CEO of OpenSea wrote. The move by OpenSea comes after a noticeable decline in the percentage of users paying opt-in royalties to creators. According to data from the chain, only 18% of merchants pay royalties to artists when given a choice to do so.

Solana is struggling after the FTX collapse

During last year’s NFT boom, Solana became one of the most popular blockchains for digital art. The platform has seen an influx of digital artworks and tokenized collectibles due to its scalability and low fees.

However, the collapse of NFT prices, as well as the FTX collapse, has put Solana in a dire situation. With a lower trend in the NFT market, interest in Solana was waning. However, the real blow to Solana was the FTX collapse, which saw the token drop 60% within weeks.

FTX was one of the major investors behind Solana, and the exchange used Solana’s blockchain to power some of the infrastructure. Furthermore, since the FTX collapse, many of Solana’s validators went offline, suggesting that FTX was also running many of its validators.

On the other side

• The lack of on-chain solutions for NFT royalties demonstrated a striking centralization in the NFT space, which is only now being addressed.

Why you should care

Royalties will help artists and developers build more value and functionality into NFT projects and potentially support a decentralized creative ecosystem.

Read about Solana’s crash after FTX’s bankruptcy:

Solana (SOL) open rate rise correlates with weak funding rate amid FTX crisis

Learn more about creating your own NFT collection:

How to Make and Sell NFTs: A Step-by-Step Guide for Beginners

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