By implementing this new standard, a new asset class will be created to support those seeking loyalty.
A New NFT standard
Magic Eden, Solana’s largest NFT marketplace, is tackling the issue of NFT creator loyalty. This comes after a wave of optional loyalty markets devoured its market share, with Magic Eden CEO and co-founder Jack Lu speaking at his Solana Breakpoint conference in Lisbon and talked about this issue. Jack Lu advocated a new NFT standard that enforces royalties at a complex technical level.
Lou said:
“There is a real opportunity to create a new asset class.Magic Eden has spoken to dozens of creators across so many industries and asked for their input but some people really want the enforcement of royalties and new business models.”
The CEO warned that the new standard for NFTs has significant trade-offs. However, he added, “Enforcing royalties when necessary means that the creators have a degree of control.”
Possibilities of a New kind of NFT
Lu elaborated on his comments in an interview with Breakpoint. He said,
“NFTs that enforce this type of royalty do not look like NFTs as we understand them today. Therefore, the owners are willing to give up some level of control or freehold rights in these NFTs, should be in favor of the author.”
He further suggested that they may no longer be called NFTs. You may have a name that reflects that.
OpenSea, the leader across NFT marketplaces, has created an enforcement tool that allows creators of new projects to block Ethereum marketplaces that don’t enforce royalties was investigated. Research has shown that creator fees are almost non-existent. So while this feature is optional, it’s a matter of choice for creators to subscribe to.
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