The top Solana NFT marketplace is launching a rewards program with freebies and benefits in connection with an upcoming fee model change.
Magic Eden, the largest Solana NFT marketplace by sales volume, has announced a rewards program that will provide its frequent traders with fee discounts and free NFTs, among other perks.
The Magic Eden Rewards program, which launches later this afternoon, includes five tiers of rewards, with users collecting points according on the amount of Solana (SOL) they’ve spent on the marketplace. According to the corporation, each step on the ladder gives bigger advantages, like deeper discounts and access to NFT rewards.
Traders who have used several Solana wallets to trade NFTs on the platform can join them all to a single Magic Eden account in order to maximize rewards considerations, as compared to basing each account on a single wallet.
The rewards, according to Magic Eden, will comprise “loot boxes” from NFT projects, NFT giveaways, and discounts. The program is described as a way for NFT developers to contact Magic Eden’s large user base, providing it a marketing opportunity for projects and potentially cementing the marketplace’s position as the market leader in the Solana space.
“As a marketplace, we’ve been trying hard to ship innovation that goes beyond the pure transactional layer,” CEO Jack Lu said in a release. “Magic Eden Rewards gives us ways to celebrate and engage our community in new ways.”
The rewards initiative is also related to a future change in how Magic Eden handles its own marketplace fees. Until lately, Magic Eden took a 2% cut of all secondary sales; but, it temporarily waived this cost beginning in mid-October, when it adopted the controversial decision to make creator royalty fees optional for traders.
Magic Eden will continue to waive this platform fee until the end of 2022, after which it will introduce a new “dynamic maker/taker model” for platform fees in January. In effect, the model will split fees between purchasers and sellers, as opposed to the company taking its cut only from sellers.
Under this new model, the split will rely on the type of transaction and the level of loyalty rewards of the user who logs into an account. According to the company, listing NFTs and bidding on listed NFTs are “maker” transactions, while buying an NFT or selling it instantly through a collection offer is a “taker” transaction.
Magic Eden was valued at $1.6 billion when it raised $130 million in a Series B funding round in June. Since its introduction in late 2021, it has dominated the Solana NFT industry, expanded into Ethereum, and will shortly support Polygon, the Ethereum scaling network.
This fall, the marketplace lost a significant portion of its market share due to the development of other platforms that did not require sellers to pay creator royalty fees, typically 5% to 10% of the sale price. Later, Magic Eden recovered its market-leading place by implementing a similar rule and allowing users to opt out of paying creator fees.
Leave this field empty if you're human:
