Magic Eden Traders Can Earn New NFT Token Alongside ‘Diamonds’ Rewards

An enormous shift is coming for Magic Eden, the outstanding cross-chain NFT market. On Monday, the startup introduced that it’s going to open-source its minting and buying and selling protocols in collaboration with a brand new Non-Fungible DAO—which itself is planning to launch a crypto token known as “NFT” to reward NFT merchants.

On Tuesday, Magic Eden revealed extra of the way it plans to amplify its present Diamonds rewards program throughout blockchains, whereas additionally discussing with Decrypt the methods during which customers might profit from the NFT token launch.

Magic Eden Common Supervisor Tiffany Huang informed Decrypt that the Non-Fungible DAO will award the NFT token to folks “who’re utilizing the protocols that they’re governing”—which is able to embody the Magic Eden market and minting protocols throughout chains.

Huang stated that it’s not but clear which chain or chains Non-Fungible DAO will launch the NFT token on, though Magic Eden itself began on Solana and nonetheless is primarily related to the chain. And whereas no particular particulars can be found when it comes to timing or token allocations, the connection between the NFT token drop and Magic Eden buying and selling has been made specific.

Introducing Magic Eden Rewards

We’ve spent the final 12 months designing a long run, cross-chain NFT rewards program constructed for everybody. This isn’t simply one other factors marketing campaign. It’s a meticulously crafted plan to present again to Magic Eden’s OGs, collectors, creators, and degens alike.…

— Magic Eden 🪄 (@MagicEden) January 23, 2024

“What we are able to objectively say is that individuals who use Magic Eden’s protocols will obtain the [NFT token],” Huang affirmed.

On the similar time, Magic Eden will develop its present Diamonds reward system and convey it throughout all 4 chains that it serves. Huang described the Diamonds mannequin and the DAO’s NFT token drop as being “parallel paths” for buying and selling rewards, saying that Magic Eden’s personal inner Diamonds ramp-up will proceed on indefinitely.

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“Magic Eden’s Diamonds program is one thing that we need to reside on perpetually,” Huang stated, “even past Non-Fungible DAO releasing their NFT token.”

Diamonds are presently reside on Solana and can be a part of the upcoming Ethereum NFT market—created in collaboration with Bored Ape Yacht Membership creator Yuga Labs—that’s now deliberate to launch in late February. After that, Magic Eden will deliver such rewards to Bitcoin and Polygon, as properly.

Magic Eden can even implement rewards into its new cross-chain crypto pockets, which launches to the general public on January 29 following a closed beta debut final November.

In contrast to another points-based fashions that primarily give attention to rewarding NFT merchants that checklist their property on the market or offering liquidity to buying and selling swimming pools, Huang stated, Magic Eden additionally plans to supply rewards to the typical retail person who’s merely shopping for NFTs through {the marketplace}.

The Diamonds mannequin will present an array of quests to finish to earn factors, she added. Magic Eden can even do an enormous drop of Diamonds on February 2 to longtime customers, providing rewards that date again to the beginning of {the marketplace} in 2021.

There’s clearly overlap between the NFT token rewards and Diamonds, however Magic Eden is treating them as particular person initiatives.

“You will get Diamonds the extra you employ Magic Eden, and you then’ll get NFT the extra you employ Magic Eden,” she defined. “However there’s not a direct correlation between Diamonds and the token. They’re two separate packages.”

Going open-source

What’s the Non-Fungible DAO? For now, it’s not fully clear.

Huang described it as a “community-owned” group with its personal workforce separate from Magic Eden, and that the workforce has “traditionally launched totally different tokens.” Decrypt requested to be related with the Non-Fungible DAO workforce, however didn’t make contact earlier than this story’s publication.

Decentralization is crucial to the worldwide adoption of NFTs. Magic Eden can be open-sourcing and contributing all of its NFT buying and selling and minting protocols to Non-Fungible DAO.

— Magic Eden 🪄 (@MagicEden) January 22, 2024

We’ve seen examples prior to now of decentralized foundations or organizations used to launch tokens utilized by crypto apps or protocols, in addition to NFT tasks. It’s seen as a method to try to keep away from regulatory points from the SEC and different companies, although the method tends to boost the query of whether or not it’s all a ruse—a little bit of “decentralized theater,” if you’ll.

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For instance, ApeCoin is ostensibly the token of the Bored Ape Yacht Membership ecosystem, however Bored Ape creator Yuga Labs denies duty for creating it, regardless of embracing the token with its tasks and being granted sizable allotments. The official line is that ApeCoin was created by the ApeCoin DAO.

It could be a lot the identical with Magic Eden and the Non-Fungible DAO, as {the marketplace} is the one outstanding supporter related to the DAO as of now.

Requested in regards to the idea of decentralization theater and given the ApeCoin DAO instance, Huang responded that Magic Eden has lengthy wished to embrace a extra open-source mannequin. Getting there hasn’t been a straight path, nonetheless; Magic Eden has been criticized prior to now for utilizing closed-source code and resisting composability with different protocols.

The $NFT group will management and steward the longer term growth and adoption of the DAO’s protocols, the place every token holder will get to vote on governance and use of the ecosystem funds.

— Non-Fungible DAO (@Non_FungibleDAO) January 22, 2024

“For my part, it was honest that there was that dialogue and a good quantity of disappointment from the group on the time about that,” Huang admitted. “As we grew larger, it simply grew to become actually clear that we needed to decide a lane. And we finally needed to select the ethos of Web3 over all the pieces.”

Magic Eden introduced final 12 months that it might ultimately open-source the good contracts that energy its Solana protocols, and already launched open-source code when it began supporting Bitcoin Ordinals. Huang stated that it’s going to do the identical on Ethereum and Polygon within the months forward, following an extended interval of reflection about Magic Eden’s function within the NFT world.

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“I believe we—within the fog of conflict—thought that we needed to develop into closed-source in an effort to simply preserve constructing and never getting distracted,” she stated of Magic Eden’s previous mentality because it began to develop cross-chain. “I believe there have been errors that we made when it comes to our attitudes in direction of that.”

Now, nonetheless, Magic Eden is pushing in direction of a future during which its tech can be utilized by different builders to launch their very own marketplaces that may goal particular markets or niches, for instance, and attempt to develop the broader NFT trade.

Why now, although? The Non-Fungible DAO launch and Magic Eden’s increasing rewards plans come as rival Tensor has taken over substantial NFT buying and selling market share on Solana—as a lot as 70-80% recently. Tensor has its personal rewards mannequin that hints at a possible token launch, which can be fueling its progress.

Huang stated, nonetheless, that it’s a matter of Magic Eden having steadily constructed up thus far, via the launch of cross-chain infrastructure and its pockets, plus what she had described as the corporate’s evolving stance on open-source tech. It’s lastly time, of their workforce’s view.

“Give it some thought like two lengthy years of enjoying chess,” Huang stated. “We lastly have all the precise items, after which we have to drive adoption for these items. And we additionally need to present appreciation to the group that stayed with us for thus lengthy.”

Edited by Guillermo Jimenez

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