LooksRare is a community-centric NFT marketplace that distinguishes itself from its main rival, OpenSea, by distributing 100% of the trading fees generated to its token stakers and incentivizes collectors and traders with its LOOKS token incentives. LooksRare incorporates LOOKS as its inherent and fungible utility token. LOOKS is specifically designed to provide the utility functions described by LooksRare and to facilitate their transfer.
Proof of Stake
$LOOKS Staking: Committing $LOOKS to staking pools enables users to earn a proportionate share of transaction fees generated on Looksrare marketplace. Trading and listing rewards: users receive $LOOKS when and listing and trading NFTs. These incentives are meant to bootstrap the platform. Governance: $LOOKS holders will be able to participate in governance votings in the future.
Yield generation: Users holding LOOKS can earn staking rewards as a share of LooksRare's revenue and incentives. Higher revenue generates increased fees for token stakers, resulting in higher APR and attracting more users to purchase LOOKS to stake.
One key aspect of LooksRare's value creation is, besides its consistent technical improvements and introduction of innovative features, its incentivization program for trading and listing NFTs. These incentives attract new users, keep existing ones, and also lead to an increase in trading volume. The platform's incentive for listing blue-chip NFTs has been particularly effective in attracting high-value transactions and boosting overall trading volume.
Value accrual to token: Trading fees generated on LooksRare are distributed proportionally among LOOKS token stakers, capturing the value created through trading volume on the platform. Value accrual to protocol: The LooksRare protocol captures value by staking the tokens from the treasury allocation.
The business model for LooksRare protocol Revenue comes from: Charging a 2% fee in WETH on every transaction made on the LooksRare marketplace. Revenue is denominated in: WETH. Revenue goes to: 100% distribution proportionally among the stakers of the LOOKS token. This includes the team-, treasury- and other allocations that can stake LOOKS.
|Problems & Solutions
Problem: Traditional marketplace models lack adequate incentives to drive user participation and engagement. Solution: LooksRare's community-first approach and token incentivization mechanisms provide a solution by incentivizing user participation and distributing protocol revenue proportionally among token stakers.
Rarible - Although LookRare was one of the first community-first marketplaces incorporating a token, Rarible with its RARI token was one step ahead, so it can be assumed that LooksRare used Rarible's tokenomics as a foundation.
... coming soon
TGE and start of the release schedule