4 mins readNFTs, or non-fungible tokens, have taken the digital world by storm in recent years. These unique digital assets have gained immense popularity due to their scarcity and collectibility. The growth of NFTs has led to the emergence of a variety of markets to make it easier to buy and sell these assets. One such marketplace is LooksRare.
This post will examine the unique aspects of LooksRare and how it stands out from competing NFT marketplaces.
Discover the leading community-first NFT marketplace
Overview
LooksRare is a community-first NFT marketplace on the Ethereum blockchain that rewards traders, creators, and collectors for active participation. The platform was launched in January 2022 by two anonymous founders going by the pseudonyms "Zodd" and "Guts". Since its launch, LooksRare has gained attention for its unique approach to NFT trading and its rewards program.
Rewards Program
One of the most notable features of LooksRare is its rewards program. Users who buy or sell NFTs from eligible collections can earn LOOKS tokens, the platform's native utility token. The more active a user is on the platform, the more LOOKS tokens they can earn. The rewards program incentivizes users to participate actively in the platform and provides an extra benefit for traders and collectors.
In addition to buying and selling NFTs, users can also stake LOOKS tokens to earn even more rewards. The staking system is designed to encourage long-term participation and loyalty from users. This rewards program sets LooksRare apart from other NFT marketplaces and creates a more engaging and interactive trading environment for users.
LOOKS is the native, fungible token of the LooksRare protocol
It’s a transferable representation of the utility functions specified in LooksRare’s protocol and code, where it’s designed solely to be used as an interoperable utility token.
| Percentage of supply | Total LOOKS | |
| Airdrop | 12% | 120,000,000 |
| Strategic Sale | 3.3% | 33,083,003 |
| Liquidity Management | 1.7% | 16,916,997 |
| Volume Rewards | 44.1% | 441,000,000 |
| Staking Rewards | 18.9% | 189,000,000 |
| Founding Team | 10% | 100,000,000 |
| Treasury | 10% | 100,000,000 |
| Supply | 100% | 1,000,000,000 |
Fees and Trading
LooksRare charges a 2% sales fee on all NFTs, which is lower than some other top NFT marketplaces. This fee is paid in WETH, and it helps to cover the costs of running the platform.
Users can buy and sell NFTs on the platform, and trading fees are 20% lower than on OpenSea, one of the largest NFT marketplaces. This makes LooksRare an attractive option for users looking to trade NFTs with lower fees.
Screenshot from LooksRare
NFT Royalty Standard
Another key feature of LooksRare is its support for the ERC-2981 NFT Royalty Standard and its standalone royalty registry. This means that creators can receive royalties each time their NFT is resold on the platform. The support for this standard demonstrates LooksRare's commitment to providing fair compensation for creators.
Community-First Approach
One of the most significant advantages of LooksRare is its community-first approach. The platform rewards users for active participation, and it encourages a sense of community among traders, creators, and collectors. This approach creates a more engaging and interactive trading environment for users.
The community-first approach is also evident in the platform's social media presence. LooksRare is active on Twitter, where it shares updates about the platform and interacts with its users. The team behind the platform is attentive to user input and dedicated to enhancing user satisfaction.
Pros and Cons of LooksRare
Pros:
- Low fees: LooksRare charges a flat fee of 2% on all NFT sales, which is lower than other top NFT marketplaces that usually charge 2.5% or more.
- Community-focused: LooksRare aims to foster the NFT community by rewarding user participation and being founded "by NFT people for NFT people".
- Wide range of NFTs: You can look up and examine any non-fungible coin on the Ethereum blockchain with LooksRare.
Cons:
- No mobile app: LooksRare currently does not have a mobile app, though you can log onto the platform from your mobile browser.
- No fiat purchases: Currently, there is no way to purchase assets on the platform with non-crypto currencies such as USD or AUD.
| OpenSea | LooksRare | |
| Marketplace | Centralized | Decentralized |
| Native Token | NA | LOOKS |
| Trading Fee (TF) | 2.5% | 2% |
| TF Distribution | Kept by the platform | 100% returned to token stakers |
| Rewards | NA | Multiple rewards |
Comparison between marketplaces: OpenSea and LooksRare
Final Thoughts
Overall, LooksRare is a promising player in the NFT marketplace industry. Its community-first approach, rewards program, and support for the ERC-2981 NFT Royalty Standard demonstrate its commitment to providing a fair and engaging trading environment for its users.
