Magic Eden has launched XOR, a tool it claims allows creators and collectors to “prove ownership and divide royalties based on their own rules.”
XOR is compatible with any NFT standard and will work on any blockchain. It also does not require users to trust Magic Eden or any other third party for authenticity verification of the NFTs used in the ecosystem created by XOR.
In an announcement posted to Medium, Magic Eden CEO David Gold said: “The first tool we have built is called XOR. This provides royalty enforcement through smart contracts that run on any Ethereum-based chain and give full transparency over all transactions between owners of digital assets.”
In April 2021, Christie’s announced that it would sell a series of digital artworks by artist Beeple at an auction expected to fetch $2 million to $3 million. Beeple responded to criticism over the environmental impact associated with NFT artworks by creating a carbon offsetting program.
On May 11, it was revealed that the artworks sold for $69 million. The developers behind Ethereum (ETH) blockchain-based platform Magic Eden have defended the release of a tool that can be used to enforce royalty rights on nonfungible tokens (NFTs).
Magic Eden Remain Stiff With Its Decisions
The new product, dubbed the “Royalty Enforcement Tool,” is intended to allow creators to mint NFTs, collectors to purchase them, and then enforce royalty rights with respect to those particular collectibles.
As previously reported, NFTs have come under fire for their environmental impact — as each NFT transaction requires multiple transactions. However, most of this criticism is overblown.
While it is true that NFTs do require more energy to complete a transaction than traditional assets like stocks or bonds (which only require one transaction), they are still far better for the environment than other art forms.
In fact, according to estimates from several economists at Carnegie Mellon University (CMU), a single piece of digital art can pollute up to two million times more than its physical counterpart. Magic Eden has defended the release of its royalty enforcement tool, but it remains unclear whether or not the XOR system will be adopted by NFT creators or collectors.