NFT marketplace Magic Eden revealed a new mechanism that would introduce a cost-effective alternative to produce content at scale – cNFTs, or compressed NFTs.
In a September 14 tweet, Magic Eden distinguished cNFTs from traditional Solana NFTs, stating that its ability to employ data compression and off-chain storage would reduce minting fees and allow for NFTs to be produced at a fraction of the cost.
Unlike minting on Ethereum, cNFTs harness Solana’s state compression, facilitating the minting of up to 1 million NFTs for approximately $110 (compared to minting price points from $2.90 to $30+ per NFT on Ethereum).
For larger-scale collections spanning gaming, music, and events, utilizing cNFTs increases the reach creators already have and allows them to broaden their targeted network without incurring substantial additional expenses.
By lowering the expenses associated with creating an NFT, Magic Eden aims to create an accessible entry point for newcomers who want to dip their feet in with digital collectib;es that “are lower stakes, fun, and affordable.”
In May, Magic Eden launched its Chapter II rewards program that rewards traders with Solana’s native cryptocurrency, $SOL, based on their trading activities. By temporarily reducing its maker fee to -0.25%, Magic Eden provides traders with the opportunity to earn $SOL on each transaction.
Editor’s note: This article was written by an nft now staff member in collaboration with OpenAI’s GPT-3.5.