Magic Eden, a Solana-based NFT marketplace, has announced the release of a new tool that will levy royalties on all new collections that choose to participate. The tool, known as “Open Creator Protocol” (OCP), is an open-source program designed to safeguard creators’ earnings. If they embrace OCP, creators will be able to block sales on any platform that does not pay royalties on their works.
Magic Eden aims to transform the NFT market with OCP
As of the 2nd of December, the OCP tool will affect creators who are releasing new collections. However, new collections on Magic Eden’s marketplace will not be required to pay royalties if they do not use OCP. Magic Eden hopes that the tool will help them provide royalties for creators releasing new collections right away while they continue to work with ecosystem partners to develop other options.
Launching creators who choose to implement the protocol can secure their royalties and take advantage of other benefits, including dynamic royalties and a customizable token transferability option. An NFT’s royalty payment will be set according to a linear pricing curve, as specified by the dynamic royalties function. For those that pay more for the NFT, that could mean a decrease in the nominal value of royalties.
On the other hand, customizable transferability allows for a wide variety of applications. For example, the option can make tokens in a collection untradable until the mint closes. Creators can also restrict the number of times a token can be traded or impose restrictions based on its metadata content. Similarly, if additional royalty enforcement systems develop and acquire market adoption in the future, Magic Eden will be ready to incorporate them.
Magic Eden’s “Magic Mint” will be a free pilot program for the Open Creator Protocol’s various features, such as protected royalties, dynamic royalties, and tunable transferability. These features will be available to users upon launch. A few thousand gift boxes will be up for grabs during the mint.