Jack Lu, the CEO of Solana-based nonfungible token (NFT) marketplace Magic Eden, said that NFT creators “need a sustained revenue model,” and with “no way” of currently enforcing royalties, a “new asset class” could emerge to enforce them.
It has been reported that Lu said in an address at Solana’s Breakpoint 2022 conference on November 5 that these NFTs could “give rise to a new asset class” as the space grapples with the debate around opt-in royalties.
He added that “creators need a sustained revenue model,” and while royalties were one of those models, there is “no way” to enforce them with the “current design,” but added there are “many new innovations that could be made available to them.”
However, Lu noted that over the past months, Magic Eden had spoken to “dozens, if not 100” NFT creators across differing NFT use cases and that they found their needs “actually are very, very divergent.”
He further said:
“There is a real opportunity to give rise to a new asset class, and this asset class will have special properties but also have special trade-offs. So it could enforce royalties at a technological high technological level.”
The report said that those “trade-offs” would mean NFT creators would have “some level of control,” Lu explained, but added in the talks Magic Eden had with creators and holders that they were “willing to accept some of these trade-offs” in order to ensure that they could bring their business models to fruition.
Thus, 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 the privacy-oriented browser Brave.