Magic Eden, the second largest NFT marketplace after OpenSea, has launched a new tool for NFT creators on its platform. This tool is similar to the one released by OpenSea at the beginning of last month.
Magic Eden Introduces OCP Tool For NFT Creators
The NFT marketplace announced the news on December 1st. The open-source tool, called Open Creator Protocol (OCP), allows NFT creators to enforce royalty on their NFT collections.
Meanwhile, Magic Eden built the tool using the standard of Solana’s SPL token. The enforcement will apply to new NFT creators who choose the feature beginning from December 2nd.
Jack Lu, the CEO of Magic Eden, first talked about this tool on November 5th at Solana’s Breakpoint 2022 event. According to Lu, such a tool would provide NFT creators with a regular source of revenue.
Interestingly, NFT creators who adopt the OCP tool can restore the sales of their NFTs on marketplaces practicing optional NFTs. However, Magic Eden noted that this new tool does not wipe out its present optional royalty model.
NFT creators can still choose this option when launching their NFTs on Magic Eden. Additionally, creators who want to apply the OCP tool on existing NFT collections must “burn [and] re-mint” them.
“We have discussed with several platforms to work out ways for creators to benefit from their work. The OCP tool is our way of supporting royalties on new NFT collections,” Lu added.
Other Functions Of The OCP Tool
The OCP tool has other functions for creators to regulate their earnings. It allows them to use a function called dynamic royalties.
Dynamic royalty is an option that reduces the amount buyers pay as royalties when they pay higher prices. Also, there is another option called customizable token transferability.
This option could limit the number of times an NFT can be traded or place a trade freeze for a given time.
Meanwhile, Magic Eden adopted an optional royalty system earlier in October. This model allowed buyers to choose how much they wanted to pay as royalties for a particular digital collectible.
Unfortunately, this optional model caused turmoil in the NFT community. Many NFT creators argued that this would affect the revenue they receive for their work.
Besides, only a few users might end up paying royalties. For NFT creators using this new tool, their NFTs will not be available on marketplaces that operate optional NFT royalties.
Before Magic Eden turned to optional royalties, the Solana-based marketplace launched a similar tool in September. At the time, Magic Eden partnered with Coral Cube, a popular marketplace, to develop that tool known as the MetaShield.
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