Looking for Something? How Looksrare is Building a Community Marketplace for NFTs
Following the NFT mania of 2021, things have settled into a steady rhythm. The initial pell-mell rush of outrageous pricing and celebrity cash-ins has (somewhat) subsided. Collections both large and small have found success in appealing to the basic instinct of human collector syndrome.
More than that, NFTs have begun to harness their latent possibility – the idea of digital keys that can act as portals to greater utility, and linchpins of community-focused action. This, plus the incipient metaverse and all the fabled possibilities of virtual space, have created a vibrant NFT marketplace, one which is slated to only grow as blockchain adoption gathers pace.
How To Buy NFTs
But where to buy and trade them? A few well-funded first movers have already taken their place at the top of the table. Opensea is the largest, focused on Ethereum NFTs, while Magic Eden rules the roost on Solana. Yet newer marketplaces are emerging all of the time, with one of them being Looksrare.org.
LooksRare derives its name from the traditional discord refrain “looks rare 👀”. NFT collections traditionally have rarity rankings, akin to the trading cards of old. As NFT collections are often procedurally generated from layered artwork, each with a different probability of being created when the piece is minted, some NFTs in a collection are far rarer than others.
A good example would be the ‘alien’ cryptopunk skin, of which there are only 9 in the entire 10,000-strong collections. An alien cryptopunk is worth substantially more than its fellow punks, with one fetching 8,000 ETH.
Decentralizing the NFT Market
LooksRare is an attempt to launch a community-driven marketplace where all participants can earn rewards from contributing. Contribution can come in the form of listing rewards and trading rewards. To compete, its trading fees are 20% lower than Opensea. This, alongside the promise of LOOKS token rewards, is how LooksRare seeks to establish itself.
It has other unique features too, including ‘collection offer’, where a bid is placed for any NFT within a collection, and holders who see it can accept it. Similarly, users can submit ‘trait offers’, offering to buy any NFT from a collection with a given trait. It also allows for multi-cancellation, allowing people to delist multiple NFTs with one transaction, saving on gas.
Listing and Trading Rewards: The LOOKS Token
Listing rewards earn users points from listing NFTs from eligible collections within 1.4x of the global floor price. Listings earn points every ten minutes. Once per day, these points can be converted into LOOKS tokens, the native token of the marketplace. The higher the value of the collection, the greater the listing reward. Furthermore, the closer to the floor price a listing is placed, the greater the rewards. The aim is to increase the liquidity and vibrancy of the marketplace, encouraging users to list their NFTs on LooksRare at a price that represents a good deal, attracting buyers to the platform.
Trading rewards function like cashback on trades, both buying and selling, with points being rewarded to the size of the sale. The trading reward emissions will last for approximately 721 days until the pool of LOOKS tokens is exhausted, with the ecosystem becoming fully self-sustaining at that point. Token rewards will taper off over time. Rewards are calculated by looking at the size of a trade-in ratio to the total volume on the marketplace that day. To prevent wash trading, there is a platform fee of 2% on NFT sales, alongside the royalty fees set by the collection itself.
Looking to the Future
100% of the platform fees are given to those who stake LOOKS. In this way, ongoing participation and commitment create a virtuous circle of rewards that helps enshrine the community-led ethos that LooksRare is attempting to create. Those who stake LOOKS can also save on their trading fees.
How can I get TOKE?
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*direct TOKE purchases coming soon.
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