The year 2021 will go down as the year of NFTs.
The world’s largest NFT marketplace, OpenSea, surpassed $14 billion in transaction volume in 2021. However, OpenSea is just one of several companies that have capitalized on the ever-growing NFT market. Now, LooksRare is getting in on the action.
LooksRare brands itself as a community-first NFT marketplace. As such, we’ll be taking a closer look at how LooksRare does this by actively rewarding traders, collectors, and creators for participating in their marketplace.
Many people in the NFT community are excited about LooksRare and the LOOKS token, but if you’re new to the platform, it can be overwhelming.
This beginner’s guide to LooksRare gives you an easy explanation of NFTs, what LooksRare is, and how it works. Likewise, we’ll also cover some of the key features of the LooksRare marketplace and LOOKS token.
Let’s get started.
What is an NFT?
First, let’s define what an NFT is. NFT stands for “non-fungible token.” An easier way to think about it is to swap the word “fungible” with “replaceable.” So an NFT is a token that is non-replaceable or, in other words, a token that is completely unique.
For example, the Mona Lisa is non-fungible, there’s only one and there can only ever be one original Mona Lisa. On the other hand, a sack of rice is fungible – there can be multiple versions endlessly and it doesn’t matter which sack you have.
What makes an NFT unique and “non-replaceable” is the fact that they are codified on a blockchain and can’t be modified. This adds a level of scarcity to an NFT and is one of the reasons why some become so valuable.
Another reason NFTs can be so valuable is because of the utility they have been programmed with. Through the blockchain, NFTs can pass on value to the holder in the form of in-game perks, community perks, physical objects, tickets to an event, or anything else.
Overall, NFTs can have artistic value, scarcity value, and utilitarian value by carrying with them some sort of programmed functionality. This has resulted in the recent craze of NFTs and why so many see them as having a huge future potential.
What is LooksRare NFT Marketplace?
LooksRare is a decentralized NFT marketplace that brands itself as community-first. What this means is that LooksRare actively rewards traders, collectors, and creators for participating in their marketplace.
LooksRare’s community-driven rewards and other convenient marketplace features, differentiate them from other established NFT marketplaces.
The way LooksRare accomplishes this is by rewarding users who transact on the platform.
- Users that buy or sell NFTs from eligible collections earn LOOKS tokens.
- 100% of trading fees are earned by LOOKS stakers.
- Creators get royalty payments at the moment of sale.
These features are a major differentiator from well-known competitors, like Opensea, who retain all transaction fees for themselves.
As such, LooksRare has begun to quickly gain a reputation as a go-to marketplace for purchasing and selling NFTs.
Now that you have an understanding of what LooksRare has to offer, let’s look at some of the key features of this NFT marketplace.
LooksRare Key Features
Users that buy or sell NFTs from eligible collections earn LOOKS tokens. What’s great about this system is that it incentivizes traders to use the platform and helps to build the community.
Transact in ETH, WETH, or a mix of both
LooksRare allows you to use either ETH or WETH when trading. What’s great about this is that it gives traders the flexibility to use the currency they are most comfortable with or both. WETH is worth exactly the same amount as ETH, but offers the benefit of working as a “converter” between Ethers and tokens.
Make collection offers
A Collection Offer allows you to place a bid on every item within a collection with a single click. This makes it incredibly easy for anyone holding an item in a collection to accept your offer and automatically fulfill the transaction.
Earn transaction fees
One of the greatest features of LooksRare is that users earn 100% of transaction fees. LOOKS stakers earn rewards from the buying and selling transaction fees collected on the marketplace, providing an incredible passive income system of stakers.
Creator royalties paid instantly
Another great feature of LooksRare is that creators get royalties at the moment of sale. What this means is that you can buy an NFT from a creator and know that you are directly supporting them. This helps creators form a trust-based relationship between them and the platform.
Simultaneously list on multiple marketplaces
You can list your NFTs simultaneously on multiple marketplaces, including Opensea and Rarebits. What’s great about this is that it gives you the exposure to more buyers and greater liquidity.
What is LOOKS token?
LOOKS is the token driving the LooksRare NFT marketplace. What makes LooksRare stand out from other NFT marketplaces is that its LOOKS token is a community-driven token.
What this means is that all transaction fees collected on the marketplace are distributed among LOOKS stakers or anyone buying or selling NFTs from eligible collections on the LooksRare marketplace.
100% of LooksRare’s platform trading fees are earned by LOOKS token stakers: a rewards model created in direct response to the previous generation of NFT marketplaces whose fees mostly reward a single entity.
This creates a strong incentive for people to transact on the platform and for LOOKS holders to stake their tokens.
How to buy the LOOKS token?
- Go to Uniswap
- Connect your wallet
- Search for “LOOKS”
- Enter the amount of ETH (or WETH) that you would like to swap to LOOKS
Frequently Asked Questions
What wallets does LooksRare support?
If you use WalletConnect, LooksRare can currently support over 100 wallets. The most popular wallet compatible with LooksRare is MetaMask.
Is LOOKs a good investment?
That is up to you to decide. What we can say, however, is that the LOOKS token is a key part of the LooksRare ecosystem and that its value is directly related to the success of the marketplace. As LooksRare grows, so too will the value of LOOKS tokens.
How is LooksRare different than competitors?
What sets it apart from its competitors is that it’s incentivized by LOOKS tokens, which are distributed to both buyers and sellers on the platform. What this means is that users can earn passive income through staking their tokens or simply buy them if they want exposure to the LooksRare marketplace.
In this guide, I’ve tried to cover everything there is to know about the new LooksRare NFT marketplace and its token, LOOKS. I think what really makes this platform stand out from other NFT marketplaces is that users earn 100% of transaction fees collected on the marketplace through their staked LOOKS tokens.If that doesn’t show deep respect for its users, I don’t know what does.
By using the LooksRare platform, users can also earn LOOKS by buying and selling certain NFTs in a collection. This creates a strong incentive for people to transact on the platform and for LOOKS holders to stake their tokens. So, if you’re looking for a place to buy or sell NFTs, be sure to check out LooksRare.