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Magic Eden submits proposal to build ApeCoinDAO an NFT marketplace

Magic Eden submits proposal to build ApeCoinDAO an NFT marketplace

Non-fungible token (NFT) marketplace Magic Eden has submitted a proposal to the ApeCoin DAO to build a marketplace where $APE holders can buy and sell NFTs for a 0.75% transaction fee.

Magic Eden claimed in a proposal posted Tuesday that the DAO was paying “obscene” fees to trade on an unnamed marketplace that “returns no value to its DAO members.”

“We aim to change that,” the firm wrote. “The ApeCoin DAO marketplace will significantly slash fees, provide sustainable utility to ApeCoin, and provide a platform through which the community can launch their own projects and initiatives. There will be no cost to ApeCoinDAO for building this marketplace.” 

Magic Eden proposed a 1.5% fee for each trade with a 0.5% discount for all transactions made in ApeCoin ($APE), and an additional 0.25% discount for transactions made by Bored Ape Yacht Club, Mutant Ape Yacht Club and Bored Ape Kennel Club NFT holders.

The proposal comes a week after Magic Eden announced it would launch on Ethereum. Currently the largest NFT marketplace on Solana, it currently takes a 2% fee on all transactions through its own platform, according to its website.

The ApeCoin DAO, which launched earlier this year, serves as the governance mechanism for the token ApeCoin. The DAO is not controlled by Bored Ape Yacht Club creators Yuga Labs — the two entities even butted heads in June over whether ApeCoin should move to its own blockchain — but its board does include several well known figures in the NFT community. Among them are Reddit co-founder Alex Ohanian, FTX’s head of ventures and gaming Amy Wu, and Animoca Brands chairman Yat Siu.

Since its inception, the DAO has received several proposals to create a marketplace. None have been successful. If Magic Eden can buck the trend, it said that it could launch its proposed marketplace in September at no cost to the DAO. 

Magic Eden also did not rule out future proposals on fee splitting between itself and the DAO, and has floated the possibility of adding new capabilities that would allow DAO members to launch their own projects.

The proposal will now work its way through ApeCoinDAO’s governance system.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Callan Quinn