Thread by @MagicEden

🧵After some difficult reflection and discussions with many creators, we’ve decided to move to optional royalties on @MagicEden.

Effective later today, we will also begin running a promotion to waive our platform fees.

📣 2/ In addition, we will launch a Creator Monetization Hackathon to develop pro-royalty & alternative creator monetization tools.

Our judges: @aeyakovenko @baalazamon @HeliusLabs @MoonRankNFT @flawmz @immature69 @statikdev

We will put up to $1M in prize money. More to come.

3/ This is not a decision we take lightly. We understand this move has serious implications for the ecosystem.

We also hope it is not a permanent decision. Today, royalties are not enforceable on chain.

We welcome and hope to see new standards that protect royalties.

4/ The market has been shifting towards optional creator royalties for awhile. These charts shows the cumulative wallets that have used optional royalty marketplaces to buy or sell NFTs.

5/ We have actively been trying to avoid this outcome and spent the last few weeks exploring different alternatives.

Unfortunately, royalties are not enforceable on a protocol level, so we have had to adapt to shifting market dynamics.

6/ How will optional royalties work?

We’ve consulted with traders and creators, and have come up with the following trading experience:

- The decision on how much royalties to pay will be passed to the buyer

- By default, ALL collections/listings will honor full royalties

7/ Our rationale for shifting royalties payments to the buyer is to make sure the buyer has full understanding of whether they are going to receive the benefits that creators provide (Discord, staking etc).

8/ As the buyer, you can choose to set your royalties in multiple ways.

You can change the settings on your user profile under your wallet. The setting will be saved and applied to NFT purchases, including Quick Buy + Pro Trade. We'll implement this for bids next week.

9/ You can also choose how you want to honor the royalties of each NFT in the royalty section of the “Item Details” page.

10/ Finally, you can also change the collection-wide royalty option on the top of each collection’s listings page.

Just hover over the disclaimer, and make your decision. Remember, by default you are honoring full royalties.

11/ As the seller, whichever price point you list the NFT at will be the amount of proceeds going into your wallet - as indicated through “You’ll Receive”.

12/ We are going to review our marketplace fee structure. For the foreseeable future, Magic Eden will not be making any % of any sales.

13/ Again, we hope that this decision is not permanent.

If you are working on pro-royalty tools or alternative business models, we want to hear from you. Please reach out via Twitter DMs or on help.magiceden.io.

14/ We'll be hosting a town hall in around 40mins with our founders to understand your points of view. We are more open to your ideas. Please join us.

twitter.com/i/spaces/1LyGB…

15/ So @Twitter decided to shadowban our thread.

For the full announcement please visit @MagicEden and check out our retweeted tweets.