NFT Marketplace ‘Magic Eden’ to Airdrop Tokens for its Coming DAO

Magic Eden, the largest NFT marketplace on the Solana ecosystem, has begun an airdrop of its Magic Ticket NFTs in preparation for the launch of its new DAO.

Thru Tues: airdropping to active wallets (in last month) who connected email / discord by today

Wed: airdropping to active wallets from last month who connect email / discord by EOD tmr

That will be the end of our 1st drop

If you can't connect email/discord, refresh or DM us

— Magic Eden 🪄 (@MagicEden) February 22, 2022

feeling something in the air…drop

— Magic Eden 🪄 (@MagicEden) February 22, 2022

The airdrop will provide recipients with access to the coming DAO, called MagicDAO. Magic Eden said the new DAO would help strengthen the wider Solana NFT ecosystem and allow its community to help guide future expansion:

Read about our #MagicTicket airdrop + @TheMagicDAO@TheMagicDAO's purpose is to work together w/ the community to create a stronger Solana NFT ecosystem

DAO will be funded with 1K SOL from ME + 2% of Magic Ticket tx fees + 5% of Magic Ticket royalties.https://t.co/RjajMLtg3M pic.twitter.com/1uX6YsbrtV

— Magic Eden 🪄 (@MagicEden) February 22, 2022

Since its launch in September 2021, Magic Eden has rapidly grown to become the dominant NFT marketplace on the Solana network. In its first five months, Magic Eden has already attracted over 410,000 users and racked up over US$700 million in trading volume.

NFT Access-Based DAO

Unlike most DAOs, MagicDAO doesn’t have an associated token – rather, it’s being referred to as an NFT-gated DAO. This model uses NFTs, known as Magic Tickets, to grant membership to the DAO at one of three tiers based on when members made their first transaction: OGs, degens and normies. 

The various tiers will give members a range of rights in the DAO and access to different perks such as free merch, access to participate in hacker challenges, NFT collection whitelists, and entry to online founder AMAs.

Governance Remains With Team For Now

Initially, governance will remain largely centralised within the Magic Eden team with a view to increasing community participation in the future. Members of MagicDAO will be able to vote on less important issues – such as which collections to feature on the homepage – but important governance decisions will continue to be made by the team for the foreseeable future:

In the beginning, Magic Eden’s team will be more heavily involved in decision-making since we want to start slowly and make sure MagicDAO is successful. Over time, we hope the community will play a larger role. 

Magic Eden statement on MagicDAO

The seed funding for the DAO is 1000 SOL, sourced from Magic Eden fees; ongoing funding will come from a 5 percent levy on creator royalties and secondary sales, and 2 percent of trading fees on Magic Ticket.

The launch of MagicDAO follows the recent launch of OpenDAO, a DAO that aims to protect buyers and strengthen the NFT community on the Ethereum blockchain. This may be part of a larger trend, which sees the NFT market maturing and taking more seriously its responsibilities to investors.