Magic Eden and Yuga Labs Launch Ethereum NFT Platform
Date: 2023-12-02 Author: Dima Zakharov Categories: BUSINESS
Revolutionizing the NFT Space
Magic Eden, known for its Solana-based NFT trading platform, has announced a groundbreaking partnership with Yuga Labs, the creator of Bored Ape Yacht Club and Cryptopunk NFT collections. Their joint venture aims to introduce a new NFT marketplace on Ethereum, committed to paying royalties to its creators—a pivotal move in the world of digital art.
An Ethical Marketplace
This platform, set to launch by the year's end according to Magic Eden's announcement, signifies a significant milestone for Yuga Labs. It's deemed as the "first major ETH market contractually obligated to pay creators royalties," aligning with the community's call for ethical practices within the NFT sphere.
Responding to Community Backlash
The decision to create a royalty-free environment on their platform, announced merely a year ago, sparked controversy within the NFT community. However, this recent partnership reflects a shift in their approach, addressing the concerns raised by creators and buyers alike.
Motivation Behind the Partnership
Yuga Labs' motivation becomes clearer when considering their fallout with OpenSea, slated to end by February 2024. This separation was triggered by OpenSea's decision to transition away from licensing fees, impacting Yuga Labs' revenue significantly. The additional royalties had led to a drastic decline in their earnings over recent months.
