Nifty News: Royalty-charging NFTs are a 'new asset class', South Korea buys NFTs with CBDC and more

CEO of NFT marketplace Magic Eden says NFT creators "need a sustainable revenue model" and they have "no way" to currently enforce royalties, a "new asset class" could emerge to enforce them.

New Royalties force NFTs to be a 'new asset class': Magic Eden CEO

Jack Lu, CEO of Solana-based non-fungible token (NFT) marketplace, Magic Eden, pitched the idea of ​​NFTs designed to enforce royalties.

Lu said in a speech at Solana's Breakpoint 2022 conference on Nov. 5 that these NFTs could "give rise to a new asset class" as the space grapples with the royalty debate opt-in.

He added that "creators need a sustainable revenue model," and while royalties are one of those models, there's "no way" it can be enforced with "design current" but added that there are "many new innovations that could be made available to them."

Lu noted that over the past few months, Magic Eden has spoken to "dozens, if not 100" of NFT creators in different NFT use cases and found that their needs "are in very, very divergent fact:"

“There is a real opportunity to give birth to a new asset class, and this asset class will have particular properties but also particular trade-offs. So it could apply royalties at a high technological level.”

These "trade-offs" would mean NFT creators would have "some level of control," Lu explained, but added in discussions Magic Eden had with creators and holders that they were "willing to accept some of these compromises". ” to ensure that they could grow their business models.

According to Lu, Magic Eden is set to launch an asset "next week" that can enforce royalties in partnership with Cardinal, a protocol enabling NFT conditional ownership and privacy-oriented browser Brave.

Jack Lu at the Solana Breakpoint Conference. Acid...