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LooksRare: What It Is & How It Works

LooksRare: What It Is & How It Works

NFT marketplaces have become a sensation, rocketing to all-time highs. Leading the way is OpenSea, but LooksRare has come out to create a massive buzz on social media platforms, attracting users with its cutting-edge features and daily trade volumes topping almost $400 million.

2022 saw a massive surge in the popularity of NFTs. Notable collections such CrytoPunks and Bored Ape Yacht Club (BAYC) gained immense traction from crypto fans looking to express themselves with artwork that reflects their digital identity. And 2023 is looking to be the year of NFTs as well.

It's time for a closer look at what makes LooksRare unique: let's dive deeper into their offerings!

What's LooksRare

LooksRare is a revolutionary NFT marketplace that signals an exciting step forward in decentralized finance.

By rewarding participants, including traders, stakers, creators, and collectors alike, for their involvement on the platform – LooksRare encourages collaboration to bring about new growth opportunities never seen before!

In early 2022, two mysterious figures known only by their aliases "Zodd" and "Guts" unveiled LooksRare. Tasked with unseating OpenSea from its throne atop the NFT market, this team of eleven set out on an ambitious endeavor backed by state-of-the-art technology and tools.

Though many doubted this upstart venture's ability to compete against such a dominant force in the industry, these anonymous founders were determined to make history!

Deep diving into how LooksRare works

LooksRare provides a secure and reliable environment for Ethereum NFT trading. Using the power of blockchain, users can access OpenSea's selection of unique digital assets with peace of mind knowing that all transactions incur only a small 2% sales fee (in WETH) on every marketplace sale - excluding private trades.

WETH fees are periodically collected and allocated to LOOKS token holders every 24 hours. At the end of each 6,500 ETH block period, these accumulated WETH fees are proportionally distributed among the stakers during the subsequent span.

By staking their LOOKS tokens, users can accumulate WETH rewards over time. They can withdraw these gains as they choose – though gas fees may apply - or wait until more advantageous conditions arise before cashing out.

LOOKS tokens not only provide stakers with strong earning potential but also offer a unique opportunity for community-driven development. The team that drives the project forwards is financially incentivized to succeed – these rewards are contingent on the successful long-term performance of the venture overall.

And what it LOOKS

LOOKS is the power behind LooksRare, a digital marketplace with one billion exclusive tokens.

Staking LOOKS

With LooksRare, users are earning incredible returns on their LOOKS tokens staked! Earn up to a whopping 700% APR in WETH (wrapped Ether) and LOOKS through the platform.

Depending on the onboarding of new participants or an increase in current stakers, this number may slowly fluctuate over time. Both 'active' and 'passive' stakeholders can join - active meaning that your tokens will be fully unlocked, while passive means they're locked for trading but able to earn rewards when stakes occur.

Rewards accrue daily with the sums split between both types of stakeholders after each period ends – so don't miss out!

The LooksRare rewards

LOOKS tokens provide an excellent opportunity for users and creators to earn rewards! Trade qualifying NFTs from special collections, and you'll receive these attractive incentives.

Whether buying or selling, trading on our platform earns special rewards! To recognize your commitment to the marketplace, we compute trade incentives daily and disperse them two hours after the end of each day. These are proportional to your activity in eligible collections within a given period – plus that of everyone else who participated - based on total transaction volume across qualifying categories.

Every night, the blockchain takes a break! At midnight UTC, claiming of trading rewards is paused to allow processing time. But have no fear - come at 2:00AMUTC, and you can start collecting your deserved bounty again.

Collections that reach a trading volume of 1,000 ETH become eligible for daily rewards. So your sales will be rewarded if you hit the mark by 00:00 AM UTC the following day!

Investing in LOOKS tokens pays off. With up to 100% trading fee incentives and auto-compounding on staked rewards, it's easier than ever for platform users to reap additional returns from their LOOKS investments! Remember - manually stake those pending rewards if you want a more significant piece of that sweet crypto pie.

By staking LOOKS tokens, users can now enjoy rewards re-invested immediately into the pool for even greater rewards. Upon withdrawing from the stake balance, initial investment and aggregated returns will be transferred straight to your wallet - providing a beneficial boost to any user portfolio!

Main differences between LooksRare and OpenSea

Compared to OpenSea, LooksRare stands out with its more attractive 2% transaction fee and 100% return of platform fees to users who stake LOOKS tokens.

Additionally, the company has pledged not to take down verified derivative projects as long as they do not pose a malicious threat — unlike their competition which is known for taking-down derivatives of high-profile NFTs in the past.

Lastly, creators can expect near-current payments when an asset trades on LooksRare - making it vastly superior over other marketplaces where royalty payouts are delayed by weeks or even months.

LOOKS tokenomics

The total supply of LOOKS tokens is 1 billion tokens and is distributed following this:

44.1%: Volume rewards

18.9%: Staking rewards

12%: Airdrop

10%: Founding team

10%: Treasury

3.3%: Strategic sale

1.7%: Liquidity management

With thriving interest in the NFT market, LooksRare presents a world of possibilities for growth. However, it's essential to contemplate your investment portfolio and risk threshold before beginning on the platform.