Welcome to Magic Eden, your go-to Ethereum marketplace for NFT collections. At Magic Eden, we believe in empowering creators by providing robust royalty settings that ensure fair compensation for their digital assets. In this guide, we'll walk you through the intricacies of royalty settings on our platform, allowing you to maximize your earnings and take full advantage of the opportunities offered by the burgeoning NFT market.
Understanding royalty settings
Royalties are fundamental in the NFT ecosystem, providing creators with a mechanism to earn a percentage of the resale value for their work, ensuring fair compensation for their contributions.
Recent advancements like ERC721-C (and ERC-1155C) offers a comprehensive avenue for creators to secure their earnings. With ERC721-C, creators gain enhanced control over their royalties, allowing for enforceable on-chain programmable royalties—a significant step towards fairness and transparency. This contract effectively allows creators to block platforms which do not respect creator royalties.
At Magic Eden, set royalties on older contracts is paid out in a structured manner to prioritize creator compensation. Here is the order at which royalties are prioritized:
1. ERC2981 setup
Initially, if a collection has ERC2981 setup on the contract, royalties will be distributed according to the specifications of this protocol. This ensures seamless and transparent royalty payments for creators. No further action is needed to be taken by the creator or the platform.
2. PPv2 backfilled royalties
In cases where ERC2981 setup is not available, Magic Eden utilizes PPv2 backfilled royalties as an alternative method. This ensures that creators still receive their rightful share of the resale value, enhancing the overall fairness of the marketplace. Review the subsequent section for further instructions on setting this up.
3. Royalty Registry
Finally, integration with the Royalty Registry facilitates on-chain royalty configurations, empowering creators, particularly those with older collections, to align with current standards and ensure equitable compensation. Please review our article specifically on using the royalty registry.
If you have used the Royalty Registry and it is not being reflected on Magic Eden Ethereum, please reach out to our support team by opening a ticket using the purple chat widget.
Setting up PPv2 backfilled royalties
To set up PPv2 backfilled royalties for your collection, follow these step-by-step instructions:
Connect to developers.freenft.com
Visit developers.freenft.com and connect your wallet as the contract owner.
Manage your collections
Navigate to the "Manage my collections" section and input your contract address. Click "RETRIEVE CONTRACT DATA" to proceed.
Configure payment processor settings:
Scroll down to locate the "Payment Processor Settings" section. Here, you'll find "Configuration Settings" where you can input the "Royalty Backfill Numerator" and "Royalty Backfill Receiver" values.
Update settings
Once you've entered the required values, click "UPDATE PAYMENT PROCESSOR SETTINGS" to finalize the setup. Please note that a gas fee will apply for this transaction.
By leveraging the powerful royalty settings available on Magic Eden, creators can unlock new revenue streams and maximize their earnings in the dynamic world of NFTs.
If you have any questions or require assistance, our dedicated support team is here to help. Simply reach out to us via the chat widget on help.magiceden.io, and we'll be happy to assist you every step of the way.