A New Era for Magic Eden: Open-Sourcing and Rewards Expansion
Magic Eden, a well-known cross-chain NFT marketplace, is undergoing a major transformation. The startup recently announced that it will collaborate with a new Non-Fungible DAO to open-source its minting and trading protocols. In addition, the DAO plans to launch an NFT token to reward traders. Magic Eden General Manager Tiffany Huang revealed more details about the expansion of their Diamonds rewards program and how users can benefit from the NFT token launch. The Non-Fungible DAO will distribute the token to those who use the protocols they govern, including Magic Eden’s marketplace and minting protocols across different chains.
Expanding Rewards Across Chains
Magic Eden will expand its Diamonds rewards system to all four chains it serves, including Solana, Ethereum, Bitcoin, and Polygon. Huang emphasized that the Diamonds model and the NFT token drop by the DAO are separate initiatives but both offer trading rewards. The goal is to provide rewards not only to NFT traders who list assets for sale or provide liquidity but also to retail users who simply buy NFTs on the marketplace. The Diamonds model includes quests that users can complete to earn points, and there will be a massive drop of Diamonds for longtime users on February 2.
Going Open-Source and Non-Fungible DAO
The Non-Fungible DAO is a community-owned organization with its own team separate from Magic Eden. It has historically launched different tokens. While details about the DAO are still scarce, Magic Eden aims to embrace an open-source model through this collaboration. The marketplace plans to open-source its smart contracts on Solana, Ethereum, and Polygon in the coming months. Magic Eden’s decision to go open-source reflects its commitment to Web3 principles and its desire to contribute to the broader NFT industry. The move comes after criticism in the past for using closed-source code and resisting composability with other protocols.
Hot Take: Magic Eden’s Evolution and Timing
The decision to open-source its protocols and expand rewards comes at a crucial time for Magic Eden. Rival platform Tensor has gained significant market share in NFT trading on Solana, potentially due to its rewards model and a potential token launch. However, Magic Eden’s General Manager Tiffany Huang attributes the timing to the gradual growth of their cross-chain infrastructure, the launch of their wallet, and their evolving stance on open-source technology. She describes it as the culmination of two years of strategic planning and aims to drive adoption while showing appreciation to their loyal community.
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