Optional royalties are a new feature aimed at empowering buyers to make conscious choices while supporting Solana creators on the platform. This article provides a comprehensive overview of how optional royalties work on Magic Eden, highlighting the benefits for both buyers and sellers.
What are optional royalties?
Optional royalties give buyers the flexibility to choose the royalty percentage they wish to pay to creators when purchasing items on Magic Eden. Buyers have three options to select from: full (100%) royalty, half (50%) royalty, or none (0%) royalty. By default, royalties are set to full (100%) for every transaction.
Mandatory royalties and the MIP-1 standard
It's important to note that optional royalties are only available for collections that have not adopted the MIP-1 standard. For more information on MIP-1 and its implications, please refer to our dedicated article on the topic.
The rational behind optional royalties
Magic Eden's decision to implement optional royalties stems from a desire to empower buyers to take an active role in supporting creators. The platform acknowledges the challenges posed by the zero creator royalty meta and aims to adapt to market trends while preserving the ecosystem's integrity.
How optional royalties work
Optional royalties are applicable exclusively on the BUY side of transactions. Sellers will receive the List price minus ME's platform fee, while buyers will pay the List price plus the royalty percentage they have selected. This option is available to set at the account level.
Applying optional royalties
Collection page setting
Buyers can set a default royalty preference by adjusting their account settings. This preference is applied on the collection page.
To set your royalty preference, navigate to the collection page and locate the settings icon in the bottom right-hand corner of the screen.
Click on the settings icon, you'll find the Royalty options 'None', 'Half', or 'Full'. Select your desired royalty setting and proceed with your trading activities as usual.
Advantages of optional royalties
The introduction of optional royalties offers several advantages for both buyers and creators:
Empowerment: Buyers have the freedom to choose the level of support they wish to provide to creators, aligning with their values and budget.
Access to perks: Opting for full royalties may unlock additional utilities or perks offered by creators, providing an incentive to support them fully.
Flexibility: Creators can still receive full royalties from buyers who choose to support them, maintaining a fair compensation model.
Enhanced exposure: The optional royalties system encourages buyers to consider the value of supporting creators, leading to potential increased exposure for creators who offer unique benefits.
While optional royalties are currently limited to the BUY flow, Magic Eden may explore the possibility of extending this feature to other aspects of the platform in the future, as per user feedback and market dynamics.
Compatibility with Ethereum, Polygon and Bitcoin Ordinals
For Magic Eden on Ethereum, Polygon and Bitcoin Ordinals, the platform respects the royalties set by all collections, and optional royalties are not applicable in these cases.
Optional royalties on Magic Eden mark a significant step toward empowering buyers to support creators on their own terms. By offering the flexibility to choose royalty percentages, Magic Eden fosters a more inclusive and sustainable ecosystem for all stakeholders. Buyers and creators alike can participate in this transformative change that shapes the future of digital art ownership and appreciation.