MetaShield works by allowing creators to tag an NFT or blur an image if the specified or sold NFT bypasses royalties.
Solana’s Magic Eden-based non-fungible token (NFT) marketplace has averted some community backlash following the launch of MetaShield, its new enforcement tool aimed at deterring NFT buyers who bypass creator fees.
MetaShield, reportedly launched in partnership with NFT marketplace and aggregator Coral Cube, was met with mixed reactions from the NFT community upon launch on September 12, with disagreements over whether NFT marketplaces protect creators’ rights or should lower royalties in order to make NFT cheaper for collectors.
The NFT Royalty Enforcement Tool is designed to allow NFT creators to flag and edit potentially sold NFTs that have managed to bypass royalties.
In an eight-part tweet, Magic Eden defended its new tool, noting that some of today’s “hardest-working creators” of “non-standard” licensing sites will be “punished.”
The new tool comes just a few weeks after the X2Y2 NFT marketplace launched a new feature that gives buyers the power to decide whether to pay royalties when buying NFTs, and if so, how much.
Magic Eden cleared things up in their latest thread, noting that MetaShield was created to protect creators, not punish buyers.
“Most people understand that free marketplaces should not become the ecosystem norm for all creators,” states Magic Eden:
“What we do is experiment, collaborate and ship. MetaShield may not be perfect, but it does offer developers a choice in this debate.”
The NFT marketplace also confirmed that they will not control NFTs and that the royalty enforcement tool will not be used to penalize buyers.
According to Magic Eden, MetaShield was designed to allow developers to “monitor Solana NFTs listed with user royalties” and “take action where they see fit” to protect their brand.
According to the Magic Eden website, NFT creators are given “editor” rights to protect the NFT, allowing them to change royalties, add a watermark, or blur the image. Once the debt is repaid, the editor can restore the NFT to its original state.
The launch of MetaShield in Magic Eden initially received mixed reactions from the community.
One Twitter user stated that the addition of MetaShield further centralized the Magic Eden NFT market, while another Twitter user said that no one would release NFTs if developers used MetaShield.
Another Twitter user said he was concerned that innocent buyers would be punished as their newly purchased NFT would be protected, explaining:
“What worries me the most is that it penalizes the buyer—someone who might not know they bought the wrong thing. After a while, the NFT suddenly becomes “shielded”. This results in them having to pay much more.
However, Magic Eden was also praised by many for “protecting” the NFT creators.
Not every NFT marketplace has sided with Magic Eden. Sudoswap decided not to apply the royalty model in order to make its NFT platform more convenient for buyers by charging only the platform’s standard fees.
Related: NFT Plain Text: Who They Were and What They Will Become
In addition, nft’s Langston Thomas has now said that even if smart contracts are created to pay royalties to creators, the NFT market must eventually abide by the royalty agreement.
This is because the NFT marketplace first receives royalties through a transaction and is not required to transfer those royalties.