NFT marketplace Magic Eden scraps mandatory royalties

The Solana-based NFT platform Magic Eden announced a move to an optional royalties model.

🧵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.

— Magic Eden 🪄 (@MagicEden) October 15, 2022

Users will now determine the amount of royalties paid to the creators of NFT collections upon sale.

Magic Eden also announced a hackathon to develop alternative tools for monetising the project, with a prize pool of up to $1 million.

According to Delphi Digital, the number of wallets that have held NFTs exceeded 6 million. Despite stagnation in the segment, most users carried out NFT transactions for the first time in 2022.

The total number of wallets that have ever held an NFT has doubled this year, surpassing 6 million. pic.twitter.com/F77tVx8DF3

— Delphi Digital (@Delphi_Digital) October 14, 2022

Earlier in June, Magic Eden raised $130 million in a Series B funding round led by Electric Capital and Greylock Partners.

In March, the NFT marketplace closed a Series A funding round for $27 million.

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