LooksRare Shakes Up NFT Market with User Rewards, Undercuts OpenSea Fees
LooksRare, a new player in the non-fungible token (NFT) marketplace, launched with a mission to revolutionize how NFT collections on the Ethereum blockchain are indexed and traded. Co-founded by anonymous figures Zodd and Guts, LooksRare is positioning itself as a community-centric alternative, promising to prioritize creators and users over corporate interests. A notable introduction by LooksRare is a token airdrop aimed at OpenSea users who have traded a minimum of 3 ETH worth of NFTs within a specific timeframe.
Empowering Users and Creators
At the heart of LooksRare’s philosophy is the desire to create a platform that genuinely benefits its community. The marketplace rewards both buyers and sellers with its native utility token, LOOKS, for transactions involving eligible NFT collections. This innovative rewards system is a significant shift from the traditional transaction fee model and aims to foster a more engaged and active community. Furthermore, LooksRare has set its transaction fee at 2%, slightly lower than OpenSea’s 2.5%, with the intent to distribute these fees to users who stake LOOKS tokens.
Challenges and Opportunities
Despite its promising start, LooksRare faced technical challenges early on, including a temporary website shutdown due to a DDoS attack on its launch day. This hiccup highlights the vulnerabilities new platforms can face but also underscores the growing interest and potential threats from competitors. On a brighter note, the timing of LooksRare’s launch coincides with the Associated Press announcing its foray into the NFT market, signaling a growing acceptance and diversification of NFT platforms. LooksRare’s innovative approach to rewarding its community sets it apart in a crowded marketplace and may pave the way for a new era of NFT trading.
Market Impact and Future Prospects
LooksRare’s entry into the NFT market is shaking up established norms and challenging dominant players like OpenSea. By offering lower fees and rewarding users directly, LooksRare is not only appealing to current NFT traders but also enticing new users to join the ecosystem. The success of LooksRare could lead to a broader shift in how NFT marketplaces operate, with a greater emphasis on community rewards and user-centric features. As the platform continues to develop and expand its offerings, the NFT community will closely watch to see if LooksRare can maintain its momentum and fulfill its promise of being a marketplace ‘By the people of NFT, for the people of NFT.’
