Big Blow For OpenSea, As A New Royalty-Focused Marketplace Lands In The NFT Market

Updated: 06 November 2023

Disclosure

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Magic Eden, the multi-chain non-fungible token market platform, has partnered with Bored Ape Yacht Club and Mutant Ape Yacht Club NFT creator Yuga Labs to create a new NFT marketplace. The most hyped NFT marketplace will fully enforce creator royalties.

In a November 04 blog post, Magic Eden NFT Marketplace confirmed plans to launch a new non-fungible token market platform in partnership with digital asset firm Yuga Labs. The highly anticipated ETH NFT marketplace is slated to launch before the end of this year.

We’re thrilled to announce that we’re partnering with @yugalabs to launch a new ETH marketplace by the end of the year.

This will be the first major ETH marketplace to honor creator royalties for all ETH NFT collections.

Without creators web3 can’t exist. Here’s to supporting… https://t.co/Pqip41jJHt

— Magic Eden 🪄 (@MagicEden) November 4, 2023

Big Blow For OpenSea NFT Marketplace

The introduction of a new NFT marketplace that fully embraces creator royalties doesn’t sound like bullish news for Opensea NFT marketplace following its recent decision to clamp NFT creators’ royalties. In this article, we shall explore how the upcoming NFT marketplace will impact other NFT marketplaces like OpenSea, which don’t enforce royalties.

In August, OpenSea, one of the largest non-fungible tokens marketplaces, announced a shift from mandatory creators’ fees enforcement to optional creator fees. The policy change that took effect on August 31 meant that NFT collectors and sellers could now choose to contribute back to the original artists through royalty payments or not.

We launched our Operator Filter so creators could restrict secondary sales to web3 marketplaces that enforce creator fees.

But we relied on opt-in by the entire ecosystem, which didn't happen. So we’re making a few changes to our approach to creator fees. 🧵⬇️

— OpenSea (@opensea) August 17, 2023

Since then, OpenSea’s decision to cut creator royalties has attracted a heated debate among the crypto and NFT community, with several non-fungible token creators and artists vowing to seek alternative market platforms to sell their digital artworks.

The digital asset firm Yuga Labs is one of the NFT creators who fell offended by the OpenSea creator royalty policy change. To express its disgruntlement, the digital asset incubation studio vowed to delist all digital collectibles on the NFT marketplace before the end of the first quarter of 2024.

On @opensea's decision to sunset their Operator Filter. pic.twitter.com/ahc155WWkX

— Yuga Labs (@yugalabs) August 18, 2023

Established in 2021, Yuga Labs is home to popular NFT collections, such as Mutant Ape Yacht Club, Otherdeed for Otherside, Bored Ape Kennel Club, and Bored Ape Yacht Club. The digital asset firm also owns the intellectual property of Meebits and CryptoPunks NFT collection.

Royalty-Focused Marketplace Lands In The NFT Market

As part of the plans to dump Opensea, Yuga Labs has partnered with the Magic Eden NFT market platform to create a brand new NFT marketplace that embraces creator royalties. The now highly awaited NFT marketplace is expected to gain traction among creators who felt disgruntled with OpenSea creators’ policy change.

It’s worth noting that the OpenSea NFT marketplace generates more than 70% of its revenue from Yuga Labs products. In that context, Yuga Labs shifting its product to the new NFT market platform that enforces royalties will impact OpenSea revenue creation.