A seismic change is on the horizon for Magic Eden, a leading cross-chain NFT marketplace. Recently, the company declared its intention to make its minting and trading protocols open-source, in partnership with a newly formed Non-Fungible DAO. This DAO has plans to introduce a cryptocurrency token, aptly named “NFT”, as a reward for NFT traders. In addition, Magic Eden is looking to expand its existing Diamonds rewards program across multiple blockchains. But how will users stand to gain from these developments?
the role of the non-fungible dao and the nft token
Tiffany Huang, General Manager of Magic Eden, explained to Decrypt that the Non-Fungible DAO will grant the NFT token to individuals who utilize the protocols they govern. This includes Magic Eden’s marketplace and minting protocols across different chains. However, it remains uncertain which chain or chains the Non-Fungible DAO will choose to launch the NFT token on. Despite the lack of specific details regarding the launch timeline or token allocations, the connection between the NFT token drop and Magic Eden trading has been clearly established.
expansion of the diamonds rewards program
Magic Eden also plans to grow its existing Diamonds reward system and extend it across all four chains it serves. The Diamonds model and the DAO’s NFT token drop are seen as “parallel paths” for trading rewards. Huang emphasized that Magic Eden’s Diamonds program is designed to be a long-term initiative, continuing indefinitely, even beyond the release of the Non-Fungible DAO’s NFT token. Currently, Diamonds are available on Solana and will be part of the upcoming Ethereum NFT marketplace, which is set to launch in late February. Magic Eden will then extend such rewards to Bitcoin and Polygon.
Magic Eden’s rewards will also be integrated into its new cross-chain crypto wallet, set to launch publicly on January 29. Unlike other points-based models that mainly reward NFT traders who list their assets for sale or provide liquidity to trading pools, Magic Eden aims to offer rewards to average retail users who purchase NFTs via the marketplace. The Diamonds model will present a variety of quests for users to complete in order to earn points.
the shift towards open-source
As for the Non-Fungible DAO, Huang described it as a “community-owned” organization with a separate team from Magic Eden. This team has a history of launching different tokens. While the specifics about the DAO are still somewhat unclear, decentralization is seen as a key factor in the global adoption of NFTs. Magic Eden is making strides towards open-sourcing all of its NFT trading and minting protocols, contributing to the Non-Fungible DAO.
This move towards open-source technology comes after Magic Eden faced criticism for using closed-source code and resisting compatibility with other protocols. Despite past resistance, Magic Eden is now moving towards a future where its technology can be utilized by other developers to launch their own marketplaces targeting specific markets or niches, thereby expanding the overall NFT industry.
The timing of these changes coincides with rival platform Tensor gaining significant NFT trading market share on Solana, and the launch of Magic Eden’s cross-chain infrastructure and wallet. Huang described it as the culmination of two years of strategic planning and development.
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