In a momentous development within the non-fungible token (NFT) community, Yuga Labs, the creator of Bored Ape Yacht Club (BAYC), has unveiled a strategic partnership with Magic Eden, a prominent multi-chain NFT marketplace.
This collaboration is poised to introduce a ground-breaking Ethereum-based marketplace, characterised by a commitment to safeguarding the rightful royalties of NFT creators with every sale.
This platform is scheduled for launch in late 2023, and both entities have left no room for ambiguity when it comes to the protection of creator royalties.
The partnership arises in response to a pressing concern within the NFT ecosystem, where the enforcement of creator royalties has faced increasing challenges.
In recent times, some marketplaces have either resorted to circumventing these royalties or substantially reducing payments.
This concerning trend gained momentum in the latter half of 2022, prompting apprehension within the NFT community.
Daniel Alegre, the CEO of Yuga Labs, emphasised his company’s commitment to advocating for content creators in light of these developments.
He made it clear that the actions taken by OpenSea presented a challenge that Yuga Labs, as a prominent NFT entity, could not ignore when it comes to supporting content creators.
“Obviously, the genesis of this was what we saw happening in the overall ecosystem with secondary royalties. The gauntlet that unfortunately OpenSea dropped made it very clear to us that we, as a company at the forefront of the NFT space, had to stand up for content creators.”
Magic Eden’s revamped Ethereum marketplace is set to introduce innovative smart contracts, a cornerstone of decentralised applications (dApps).
These contracts will facilitate the seamless execution of royalty payments during secondary market sales.
While the technical intricacies of this solution will be revealed closer to the marketplace’s launch, it has been confirmed that it will leverage the ERC-721 Ethereum NFT standard.
Yuga Labs and Magic Eden have emphasised that their commitment to upholding creator royalties extends beyond an exclusive arrangement.
Moreover, they actively encourage other marketplaces to adopt these pioneering contracts to establish a level playing field for creators.
NFT creators are also encouraged to mint their projects using these contracts to extend similar protections to their work.
The collaboration between Yuga Labs and Magic Eden, along with their resolute dedication to creator royalties, represents a significant stride in rekindling the importance of respecting creators within the NFT ecosystem.
Importantly, both companies view this partnership as a pivotal starting point in building a more equitable and creative world for creators and their communities.