Solana-based NFT Marketplace Magic Eden Partners with Yuga Labs for Ethereum NFT Marketplace
Magic Eden, a Solana-based NFT marketplace, has announced its partnership with Yuga Labs, the company behind popular NFT collections Bored Ape Yacht Club and Cryptopunks. The collaboration aims to launch a new marketplace for Ethereum NFTs that prioritizes creator royalties. According to Magic Eden’s announcement on Twitter, the marketplace is expected to be launched by the end of this year. Yuga Labs referred to this endeavor as the “first major ETH marketplace contractually obligated to honor creator royalties.”
Magic Eden’s Controversial Decision and Motivation for Partnership
Last year, Magic Eden faced backlash from the NFT community when it initially made paying royalties optional for NFT sellers. The decision was compared to a prisoner’s dilemma by co-founder Zhuoxun “Zedd” Yin. However, in response to OpenSea’s shift to a royalty-free model, Yuga Labs decided to sever ties with the platform by February 2024. This move negatively impacted Yuga Labs’ revenue, leading them to seek a partnership with Magic Eden.
Conclusion: A New Marketplace for Ethereum NFTs that Honors Creator Royalties
The partnership between Magic Eden and Yuga Labs aims to address the issue of creator royalties in the NFT space. By launching a new marketplace for Ethereum NFTs that is contractually obligated to honor creator royalties, they hope to provide a fairer and more sustainable ecosystem for artists and creators. With the launch expected by the end of the year, this collaboration could have a significant impact on the future of NFT marketplaces.
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