Magic Eden, the Solana-based NFT marketplace, has revealed that it is launching a Creator Monetization Hackathon, investing about $1 million to encourage the creation of pro-NFT royalties and the establishment of alternate means of monetization on the high throughput smart contracting platform.
Magic Eden Offering Support To Creators
Magic Eden is a platform ready to serve both creators and collectors. Therefore, the NFT marketplace is happy to provide resources to help creators compete with the changing NFT marketplace.
Magic Eden will use the Creator Monetization Hackathon to promote the development of new creative business models and also collaborate with partners to provide tools that facilitate a sustainable creator environment.
Jack Lu, the co-founder, and CEO of Magic Eden, commented on the platform’s latest move. He said the NFT ecology has lately undergone seismic upheavals.
Lu added that the latest shift from creator royalties is disappointing. However, it appears unavoidable, given that payments are not imposed at the protocol stage. He said it is now a trend that Magic Eden hopes to reverse.
The CEO noted that Magic Eden is launching a hackathon to help create new royalties tools and guarding technologies for creators. Magic Eden’s goal is to ensure that it maintains a creator-centric business with consistent revenue generation.
Meanwhile, one major factor has encouraged the entry of hundreds of brilliant creatives into the web3 market. This is the recurring royalties creators receive whenever their NFTs are sold.
Unfortunately, several NFT buyers choose to purchase NFTs on channels that enable them to avoid paying royalty fees. Evading royalty fees is possible because they are not enforced on the blockchain. Practically, they are only payable at the discretion of the collector or NFT platform.
Magic Eden Adds Optional Royalty Fee On Its Platform
According to Magic Eden’s tweet, the platform has added royalty fees on its platform. However, paying the royalty fee will be an option. This gives NFT buyers the chance to either pay full, half, or no royalties when purchasing NFTs on the marketplace.
Further, the Creative Monetization Hackathon will assist in lessening the business effect of the shift to a voluntary creator royalty model, as well as incubate technologies to safeguard royalty revenue and research alternative monetization strategies.
Moreover, artists require alternative monetization methods. The second half of the Creator Monetization Workshop will assist creators in covering the initial expenses associated with experimenting with new monetization strategies.
In place of receiving royalties, content creators may, at this time, investigate the possibility of setting up their own liquidity pools or keeping a portion of their supply to sell back to the market later.
Top creators can also try out revenue generation from Boots in conjunction with current NFTs. Boots is a system that enables users to personalize trait/skin-based SFTs (also known as semi-fungible tokens).
This system enables top projects to investigate the possibility of generating additional revenue streams. Creators who already have an appealing monetization strategy or are investigating royalty protection solutions can submit an application to the hackathon to get grant money and financial support.