The Solana-based NFT marketplace has released a new loyalty rewards program for its users. The Magic Eden Rewards initiative will incentivise traders based on how much SOL they’ve spent and offer them several benefits like discount on fees and free NFT giveaways.
Magic Eden, the largest NFT marketplace on Solana, has launched a rewards program that will offer special benefits to its most loyal customers. The ‘Magic Eden Rewards’ initiative which goes live today helps users earn reward points based on how much Solana (SOL) they’ve spent on the platform. The program distributes ‘Magic Points’ in a five-tier system that offers rewards ranging from discounts to free NFTs.
The new feature allows users to create profiles on the platform using Ethereum, Polygon and Solana wallets to be awarded Magic Points depending on their NFT transactions. For every SOL traded, users receive five points. Magic Eden has also incorporated a points maximising feature for customers with multiple wallets, where instead of having one account per wallet they can link all wallets to a single account in order to earn maximum rewards.
The rewards include NFT giveaways and discounts on items listed on the marketplace. Magic Eden sees the initiative as a way for creators to reach out to the platform’s wider audience and also instil the marketplace as a leader in the Solana NFT space.
“As a marketplace, we’ve been trying hard to ship innovation that goes beyond the pure transactional layer. Magic Eden Rewards gives us ways to celebrate and engage our community in new ways,” said Jack Lu, CEO of Magic Eden.
The program is another step taken by the company in the way it charges platform fees and creator royalties. In October, much to the scrutiny of NFT artists, Magic Eden followed the industry trend and introduced an optional royalties model on its marketplace. This allowed buyers and traders to choose how much they wanted to pay as incentive to creators. The platform also scrapped the 2% fee that it charged from customers for using its services.
Many artists were angered by the company’s decision and threatened to leave the platform if creator set royalties were not reinstated. Magic Eden then came forward and said the move was temporary and that it was looking into other incentive models as well.
However, Magic Eden will continue to waive its platform fee through the end of 2022, and from January introduce a new structure called the ‘Dynamic Maker / Taker’ model which splits the fees between buyers and sellers. Under the dynamic pricing model, fee split will be determined based on how much Magic Points the users have, their loyalty rewards level, as well as the type of transaction – Maker and Taker. Transactions that involve listing digital collectibles and bidding on them are “makers”, while buying an NFT or selling them instantly via a collection offer is a “taker” transaction. Magic Eden claims that makers and takers are eligible to receive up to 45% discount on platform fees depending on their rewards loyalty level.
Launched in September 2021, Magic Eden has grown to become the most dominant NFT marketplace on the Solana, responsible for more than 90% of all digital collectible transactions on the blockchain. The company currently valued at $1.6 billion has expanded its services to support NFTs deployed Ethereum and Polygon.
At the time of writing, SOL is trading at $14.17 – up 1.3% in the last 24 hours. With over 360 million tokens currently in circulation, Solana has a total market valuation of $5.1 billion.