Yuga Labs, the digital asset and blockchain technology company behind Bored Ape Yacht Club (BAYC) NFTs, has joined forces with cross-chain NFT platform Magic Eden to launch a new Ethereum-based marketplace. This collaboration is set to introduce the Magic Eden Ethereum Marketplace by the end of 2023.
In a joint press release, the companies declared the Magic Eden Marketplace as the first major Ethereum marketplace with a contractual obligation to uphold creator royalties. Yuga Labs emphasised its commitment to engaging only with platforms that respect creator royalties and provide fair treatment to creators. Yuga Labs CEO Daniel Alegre stated, “Magic Eden is putting their money where their mouth is, and together we are supporting the building of an Ethereum marketplace that will back creators, without whom web3 would not exist.”
Magic Eden’s CEO, Jack Lu, shared in an interview that the revamped Ethereum marketplace will incorporate cutting-edge smart contracts. These smart contracts are designed to ensure the distribution of royalties in secondary market transactions. While specific technical details are pending until closer to the launch, it is confirmed that the standard ERC-721 Ethereum NFT will be used, and NFTs with specific marketplace contract properties will enforce royalties.
The collaboration between Yuga Labs and Magic Eden seemed to address recent controversies, particularly taking a subtle jab at OpenSea. The companies stated that “respecting creator royalties is non-negotiable,” distinguishing themselves from other marketplaces that have reconsidered the mandatory nature of creator fees.
Yuga Labs had previously criticised OpenSea’s decision to make creator royalties optional, expressing their commitment to platforms that share their principles. Earlier this year, Yuga Labs led a boycott of NFT marketplaces like OpenSea and Blur over their stance on royalties.
The partnership aims to create a more just and rewarding environment for content creators within the Web3 ecosystem. Jack Lu highlighted their commitment to championing creators, stating, “In collaboration with Yuga Labs, we’re set to develop an Ethereum marketplace that resets the standard for royalty allocation, and we are hopeful this action will reverberate throughout the ecosystem.”