Magic Eden establishes royalty alliance! Dozens of NFT projects withdraw from OpenSea, Blur

The launch of the Magic Eden Ethereum NFT trading market has attracted the attention of many NFT projects, and they have expressed their intention to join and support the royalty alliance led by Magic Eden. Some projects have even announced that they will only trade on Magic Eden and its supported markets, which brings new competitiveness and development opportunities to the NFT ecosystem.

Magic Eden launches Ethereum market

MagicEden announced its cooperation with Yuga Labs and relaunched the Ethereum NFT trading market early this morning, introducing points and a possible token issuance plan. They hope to attract more users in the mainstream NFT market through this initiative.

If the NFT project sets royalty collection regulations, transactions on Magic Eden will be forcibly charged according to the set royalty rate. Royalty fees cannot be adjusted like Blur and OpenSea.

The Magic Eden team’s philosophy is to create a longer-term development ecosystem for creators, not only in terms of royalties, but also to provide a platform that truly supports their works.

NFT projects form a royalty alliance

• Yuga Labs is the biggest promoter

Yuga Labs is the biggest supporter of maintaining royalties project, they teamed up with Magic Eden after their breakup with OpenSea to push the field forward. The founders of Yuga Labs said that to celebrate the launch of Magic Eden on the Ethereum market, they will reduce royalties on all series for a duration of 69 days.

• Multiple projects announced to join the alliance

Magic Eden establishes an alliance to jointly safeguard creator royalties, in addition to the NFT project under Yuga Labs , and many other project teams have also announced to join the Creators Alliance, including:

• y00ts: Announced the implementation of mandatory royalties, profit use as buyback NFT and badges

• NEO TOKYO: Will stop supporting OpenSea and blur transactions.

• Quirkies: Announced that it will no longer provide trading on other exchanges including OpenSea, blur, looksrare

• Degen Toonz: Announced that it will be exclusively on Magic Eden Trading options are available on the Ethereum market.

• Truth Labs: The Goblin team announced that it will stop supporting the market without mandatory royalties in the future.

• HYTOPIA: Web3 version of Minecraft, the team currently has no special announcement.

• Froggy Friends: The team stated that the trading option will only be provided in Magic Eden.

• Shredding Sassy: The team stated that it recognizes the royalty mechanism and will divert business away from trading markets that do not agree with this view.

• a KID called BEAST: The team has no special announcements at this time.

• CNP Founder: Will stop supporting OpenSea and Blur.

• God Hates NFTs: Will stop supporting OpenSea and Blur.

• Kitaro World: The team expressed its support for the Magic Eden Alliance.

NFTs targeting these projects or teams can now be traded on Magic Eden by all users for extra points. The latter also very much welcomes other projects to join the alliance in the future to jointly transform the NFT ecosystem into a healthier one.

How the mandatory royalty alliance affects the market

• The impact on NFT projects

When the mechanism of mandatory royalty collection is turned on, short-term It is expected that due to the increase in costs, the use of these NFTs to increase transaction volume will be significantly reduced. As for the actual organic transaction volume, it may not be greatly affected.

The value of NFT will not be greatly affected by royalties. Whether the project is favored by the market still depends on the development and strategy execution of the project team.

However, you can pay attention to the community's aversion to royalties. If there is no way to easily control it and it turns into an atmosphere of "the project owner just wants to make money", it will indeed have a negative impact on the value of the project itself and the brand image.

• Influence on the competition of NFT exchanges

On the other hand, OpenSea and Blur, which have lost many blue-chip projects, may reduce some of their market share. However, the actual impact still needs to be more significant depending on whether more projects are added in the future. We also look forward to the attitude and response of the two in the face of this competition and development.

But it is undoubtedly a plus for Magic Eden: Magic Eden will be the biggest winner, using unique topics and strategies to increase exposure, and at the same time gain access to the trading market for many exclusive projects, adding to its entry into the Ethereum ecosystem. Many unique advantages and momentum, combined with the points plan, have contributed to a powerful market entry strategy, which is a very beautiful move.

In short, Magic Eden uses different strategies to enter the market, which will undoubtedly bring a new atmosphere to the market. Perhaps there will be big changes to the NFT ecology in the future, just like the impact caused by the emergence of zero royalties.

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