Magic Eden Introduces OCP Tool to Mandate NFT Creator Royalties

Magic Eden Introduces OCP Tool to Mandate NFT Creator Royalties
  • The OCP expands upon the Metaplex SPL token norm for Solana-based NFTs.
  • Magic Eden’s OCP is similar to OpenSea’s latest Ethereum toolset.

There is a potential danger to creator royalties in the NFT arena. Particularly on Solana, where almost all major markets have ceased mandating that traders pay the costs. Magic Eden, the most popular Solana marketplace, has recently taken action toward establishing a more stable method to enforce creator royalties.

The startup with a valuation of $1.6 billion has just introduced the Open Creator Protocol (OCP). An open-source tool that will help guarantee that developers of new Solana NFT projects would get royalties anytime their assets are transferred on secondary markets. It expands upon the Metaplex SPL token norm for Solana-based NFTs.

Income on Secondary Sales

The creator royalties on an NFT transaction are fees paid by the seller. They are normally between 5 and 10 percent of the selling price. And the money goes into a cryptocurrency wallet managed by the NFT project’s developers. If an NFT project generates a lot of secondary trading activity, these fees might be a valuable source of income.

Magic Eden’s OCP is similar to OpenSea’s latest Ethereum toolset. Intending to enable NFT developers to blacklist markets that do not pay royalties on approved assets. In other words, if a trading platform does not comply with OCP’s need to impose royalties for OCP-enabled NFTs, then that platform will be added to the OCP’s blocklist and the NFTs will not be tradable on it.

Magic Eden’s CEO Jack Lu has said that although the company would keep a record of restricted markets, producers have the option to make further adjustments if they so desire. Moreover, any Solana NFT marketplace that wants to respect royalties on OCP projects may back the open-source tool when it becomes accessible to users on Friday.

Recommended For You:

Woodies NFTs Debut as Largest Wearables Collection in Decentraland

A trader himself, Rossi has 7 years of experience trading in the forex market and the passion for writing has brought him to Newscrypto. He is the perfect combination of market knowledge and writing skills, making him one of the most sought-after writers on cryptocurrency.