Solana-based NFT marketplace Magic Eden is all set to adopt an optional royalty-based model on its platform.
The marketplace took to Twitter to announce its plan, adding that it would also be waiving its 2% platform fee.
The company's latest move to introduce an optional royalty system has sparked a scintillating debate on crypto Twitter, with several users dubbing Magic Eden's optional royalty move 'a decision that disincentivizes new project growth.'
Magic Eden adopts optional royalty system
Magic Eden on Saturday took to Twitter to announce that the platform will be adopting an optional royalty-based system.
The platform further announced that it will also be introducing other alternatives, including the Creator Monetization hackathon 'to develop pro-royalty and alternative creator monitor tools.'
Under the optional royalty system, buyers are permitted to set the royalties they wish to contribute to a crypto project.
In simpler terms, since buyers are the ones setting royalties, there might be a chance that NFT creators might not receive the desired amount of royalties, or in some cases, may not receive any royalties at all on their NFTs sold via the Magic Eden marketplace.
In the Twitter announcement, Magic Eden noted how it was a difficult decision to implement an optional royalty system within the marketplace.
Several users were quick to share their opinions on social media, labelling Magic Eden's latest move as an effort intending to suppress the growth of NFT projects. Some Twitter users welcomed the move and announced that they would support Magic Eden going forward.