Hi all,
I’m interested in putting forth a proposal to adjust royalties for NFTs to seller side instead of buyer side. There is history to this, and a lot of Sol NFT enthusiasts would get behind this. My main questions in this “Early Magic” stage are:
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Is this the kind of forum for such a proposal?
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The cost to implement such a proposal. I don’t know that it would involve much if any funding.
Draft below
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Proposal: Seller-Side Royalties for Solana NFTs
Title
Restoring Balance: Seller-Side Royalties for Solana
Abstract
This proposal recommends transitioning NFT royalty enforcement on Magic Eden’s Solana marketplace from buyer-side to seller-side. By placing royalties on sellers at settlement, the platform will reduce buyer friction, align incentives across stakeholders, close exploitable loopholes, and standardize the user experience with other blockchains. This change aims to improve trust, sustainability, and long-term growth in the Magic Eden ecosystem.
Motivation
Since the move to 0% creator royalties and subsequent shift of royalty burden to buyers, the Solana NFT market has suffered from:
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Rampant botting and scamming
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Project rug-pulls and value erosion
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Disincentivized buying (extra checkout fees)
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Ecosystem distrust
Seller-side royalties are a proven model that eliminates hidden buyer costs, restores predictability, and ensures creators receive sustainable income. Adopting this standard will demonstrate Magic Eden’s leadership and commitment to a healthier NFT ecosystem.
Key Terms
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Royalties – Fees set by NFT creators, paid on secondary sales to fund ongoing development and community initiatives.
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Buyer-Side Royalties – Current Solana default: fees are charged to buyers at checkout.
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Seller-Side Royalties – Proposed system: fees are deducted from sellers’ proceeds when an NFT is sold.
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Scalping/Botting – Automated tools exploiting marketplace loopholes for unfair profit.
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AMMs – Automated Market Makers; liquidity tools sometimes used to mass-sell and wash trade NFTs.
Specification
Plan of Action:
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Technology Integration
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Adjust smart contract logic to deduct creator royalties automatically from seller proceeds at settlement.
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Update UI to display all-in buyer price (no add-ons).
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Rollout Phases
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Phase 1 (30 days): Opt-in seller-side royalties for all collections using Metaplex enforced standards.
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Phase 2 (60 days): Default all new listings to seller-side royalties.
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Phase 3 (90 days): Deprecate buyer-side royalties as default.
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Community Involvement
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Feedback surveys at each milestone.
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Governance vote after Phase 2 to confirm permanent adoption.
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Benefits / Risks
Benefits
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Transparent pricing improves buyer trust and volume.
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Reliable creator income strengthens projects and ecosystems.
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Fairer incentives reduce wash trading and botting exploits.
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Standardized UX across blockchains simplifies cross-chain adoption.
Risks
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Sellers may perceive reduced net proceeds.
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Potential short-term friction as sellers adjust listing strategies.
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Competing marketplaces may delay or refuse similar adoption, creating uneven incentives.
Outcomes
Definition of Success:
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Seller-side royalties are adopted by default within 90 days.
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Magic Eden trading volume grows relative to competitors due to alignment with communities.
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Magic Eden brand loyalty and stakers increase due to this move
KPIs:
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% of listings with seller-side royalties.
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Total creator royalties paid ($USD & $SOL).
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Buyer retention rates post-implementation.
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Comparative market share growth.
Cost Summary
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Development & Integration:
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Smart contract adjustment:
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UI/UX redesign:
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Total:
Payment Schedule:
Performance Milestones
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Day 30: Phase 1 complete; report opt-in adoption rate & user feedback.
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Day 60: Phase 2 complete; report on default adoption and royalty revenue impact.
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Day 90: Phase 3 complete; report full ecosystem adoption, KPIs, and final assessment.
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Quarterly Reports (post-launch): Royalty revenue, trading volume, and community sentiment updates.