NFT marketplaces Magic Eden and Handy port are leveling up. Both platforms recently announced new reward systems to boost trading activity and improve the overall user experience. With Nifty Gateway introducing its Collector Appreciation Month and being Magic Eden Chapter II programthese platforms use incentives to attract and retain users in an increasingly competitive landscape.
These moves are similar to OpenSea’s recent decision to launch OpenSea Pro, which many believe was prompted by Blur’s commanding influence and success in the marketplace. As a strategic response, OpenSea decided to boost its user base by introducing a rewards system and adjusting creator royalty rates.
Now it seems other NFT marketplaces are following OpenSea’s lead.
Magic Eden Chapter II program
In an effort to renew interest in – and engagement with – its platform, Magic Eden has launched an initiative that rewards traders with Solana’s proprietary cryptocurrency, $SOL, for their trading activity. By temporarily reducing the maker fee to -0.25%, Magic Eden offers traders the opportunity to earn $SOL on every trade.
Sellers now receive 100.25% of the listing price when they sell an NFT, and buyers receive a $SOL 0.25% discount on purchase.
However, this incentive system is just one part of a much larger strategic shift for Magic Eden.
Welcome to Chapter II. It’s time to make some changes.
As of today we are:
Launch of NFT aggregation on Solana
pic.twitter.com/3b0QXal4re
— Magic Eden
(@MagicEden) May 24, 2023
In addition to offering rewards, the platform has unveiled an aggregation feature that aims to provide users with a one-stop shop for purchasing Solana NFTs from various marketplaces. It is also rolling back a feature that prevented Magic Eden listings from being merged by other NFT marketplaces. The platform has also committed to open-sourcing its smart contract code.
Ultimately, these moves come in response to both longstanding criticism and growing competition. The platform has long been censored by members of the NFT community for being closed source and for limiting composability capabilities across platforms, and it faces increasing threats to its market share, particularly from Tensor, a newer entrant at the Solana market.
Nifty Gateway Collector Appreciation Month
Meanwhile, Nifty Gateway is launching its own rewards program, called Collector Appreciation Month, starting in June. The program is designed to reward collectors based on their lifetime spend on Nifty Gateway. The platform has structured the reward system into six tiers, with the rewards increasing with each level of investment. At the highest level, users can earn a primary reward rate of ten percent and a secondary reward rate of five percent.
Nifty Gateway’s rewards program applies to all NFTs minted on its platform, both primary and secondary marketplaces. The rewards, which are credited to collectors’ Nifty Gateway balances in USD after each qualifying transaction, provide a direct and immediate return on collectors’ activity on the platform.
These innovative reward systems signal a shift in the NFT marketplaces’ approach to user engagement, marking an important step toward fostering a more dynamic and rewarding ecosystem. As competition in the NFT space intensifies, the move by Magic Eden and Nifty Gateway not only promotes active participation, but also sets a new standard for other marketplaces to follow.
Editor’s Note: This article was written by an nft now contributor in collaboration with OpenAI’s GPT-4.
