Expressing their conviction that breakthroughs won’t originate solely from profile picture NFTs like Bored Ape Yacht Club, Magic Eden anticipates the emergence of captivating utility-based NFT projects.
While most grants will exceed $10,000, a select few could secure substantial support exceeding $100,000. Magic Eden’s initiative thus stands as a beacon of hope for the NFT realm, aiming to rejuvenate creativity and resilience within the sector.
The NFT sector is grappling with a tumultuous phase, marked by escalating tensions between traders and creators, exacerbated by contentious debates over royalty distributions.
The recent move by major NFT exchanges, including Blur and OpenSea, to reduce artists’ royalty rates during token transfers has been a prime catalyst for this friction.
This shift stems from the intent to encourage heightened trading activity within a market with a staggering 95% plunge in trading volumes from its zenith of $17 billion in January 2022, as highlighted in a recent Bloomberg report.
This drastic drop in artist earnings potentially threatens to stifle new creative endeavors, further exacerbating the market’s already palpable downturn. The NFT market’s continued frailty in 2023 underscores deeper-rooted challenges beyond the sluggish demand for digital assets.
Amidst this adversity, Magic Eden aspires to unearth and nurture the forthcoming emblematic NFT endeavor, placing its bet against a paradigm of projects akin to BAYC. The newly announced creator fund will be apportioned among applicants based on their proposals’ caliber and financial requisites.
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