NFT Marketplace LooksRare Set to Compete With OpenSea by Offering Trading Rewards

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In Brief
  • LooksRare is a new NFT marketplace that offers rewards of LOOKS tokens.

  • The rewards are allocated pro rata in four phases.

  • There is a flat transaction fee of 2%.

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LooksRare looks to cash in on the NFT craze that shows no signs of abating, even at this early juncture in 2022.

There’s a new NFT marketplace that’s attracting significant trading volumes, called LooksRare. According to Dune Analytics, there was  36% more USD volume on Jan. 11, 2021, on LooksRare, than on OpenSea. LooksRare, a new kid on the block, launched on Jan. 10, 22. LooksRare allows the listing of NFTs on other platforms, like OpenSea. It should be noted that delisting NFTs from OpenSea can cost a lot of gas.

Rewards allocated pro rata in four phases

LooksRare has its own token called LOOKS, which it distributes to buyers and sellers. NFT creators also receive royalties in LOOKS. The initial phase of LOOKS rewards will see 2,866,500 LOOKS tokens distributed per day to traders. This will continue for 30 days and is the first phase of reward dispensing. Suppose a trade is completed in an eligible collection. In that case, trading rewards will be allocated a portion of 2,866,500 LOOKS based on their share of the day’s trading volume. There are three other phases of 90 days, 240 days, and 361 days, each phase having an allocation of daily LOOKS rewards. The second phase will offer 136,1587.5 LOOKS per day, the third 537,468.75, and the fourth 286,650 LOOKS. Since trading volume is the metric used to apportion rewards, traders will want to maximize that metric. Wash trading is not only possible but probable due to the 2% flat marketplace fee. Fees are allocated to LOOKS stakers, incentivizing staking, not selling. Due to the lower cost basis, wash trades can also be profitable on royalty-free NFTs.

Concerning 24-hour trading volume, the Immortal Phoenix sits atop the pile, followed by ArtBlocks, and Rebel Rabbits. Meebits takes the top spot for the total trading volume.

BAYC buyer earned $3.5K

NFT sales totaled $2.1B for the first ten days of the year. Staking of LOOKS tokens can earn up to 889.88% Annual Percentage Rate. Bored Ape #4937 was sold yesterday on the marketplace, with the buyer receiving $3.5K in rewards. The seller saved $1500 in fees and got $3.5K in rewards. On OpenSea, the buyer and seller would not have received anything except the NFT.

LOOKS reached an all-time high of 5.1 Tether (USDT) on Thursday, Jan. 13, 2022, and at the time of writing, LOOKS was selling at 3.9 USDT. Negative news could see the price breach the sub 3 USDT mark.

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David is an electronic engineer with nine years of experience. He joined BeInCrypto to combine his passion for writing and his interest in fast-moving industries, cultivated from his university days. He hopes to make crypto easy to understand.

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