Magic Eden Overhauls Revenue Share Mechanic Ahead of “Speculation Supercycle”

Magic Eden, one of Solana’s best-known applications, has implemented a creative new token value accrual mechanic through $USDC staking rewards.

The shift comes as the NFT giant continues to expand its platform into new verticals, including trading cards and sports betting.

Despite markets reacting favorably to the new revenue share mechanic, a wider market downturn has erased $ME’s 30% gain to bring prices back to pre-announcement levels. 

Magic Eden Introduces $USDC Rewards for Stakers

As the crypto community at large starts abolishing buybacks, Magic Eden has announced changes to its token value accrual model. Debuted in November 2025, Magic Eden previously allocated 30% of its revenue towards repurchasing its native token, $ME, and selected NFT collections.

From February 1st, Magic Eden will revamp this model, splitting 15% of its revenue between $ME buybacks and $USDC-denominated rewards for $ME stakers. Early estimates from analysts suggest that $ME stakers could earn around $0.089 per staked $ME over the course of one year. 

These figures assume Magic Eden generates ~$24M in yearly revenue, as the company did in 2025, and can be expected to fluctuate depending on the quantity of staked $ME.

Network participants have responded positively to Magic Eden’s new revenue distribution mechanic, with thought leaders commending Magic Eden on its creativity. 

Although, while Magic Eden is the first Solana-based application to introduce staking rewards in $USDC, the firm is not necessarily the pioneer of the ‘stake-for-revenue-share’ model. Earlier in 2025, DefiTuna committed to distribute 100% of protocol to stakers, paid in $SOL.

With sentiment towards token buybacks souring, Magic Eden Head of Ecosystem Papi argues why the protocol is doubling down on the model. Arguing that buybacks are a game played over multiple cycles, Papi articulated that token support can “fundamentally shift the economics” and align holders with the platform’s success long-term.

This stance echoes a statement made by Lifinity co-founder Durden, who argued that buybacks were more effective during bear markets as a means of supporting price and promoting scarcity.

A Well-Executed Pivot?

Once Solana’s most beloved asset class, NFTs seem incapable of reversing a multi-year death spiral into irrelevance. Originally launched as an NFT marketplace back in 2021, Magic Eden has successfully reinvented itself as a broader entertainment platform in 2025, embracing exotic RWAs like trading cards.

In 2026, Magic Eden is going all-in on what CEO Jack Lu calls the ‘speculation supercycle’. In Q1, Magic Eden is expected to launch its own crypto casino and sportsbook, DiceyHQ, in a bid to evolve alongside changing market conditions.

$ME Erases Gains Amidst Wider Market Turmoil

Traders and investors initially flooded markets to secure $ME positions, with the asset surging ~30% from $0.23 to a local high of $0.30 following the platform’s pivot to a hybrid revenue-share model.

Unfortunately for Magic Eden bulls, a wider market downturn triggered by Donald Trump’s tariff war and rising geopolitical tensions resulted in $ME completely retracing the move. At press time, $ME is exchanging hands at $0.23, down ~7% on a daily timeframe.

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