NFT marketplace LooksRare announces new tokenomics model
LooksRare, a notable player in the NFT market, has recently disclosed a substantive reshuffle of its token economics. The restructure is changing how platform fees are allocated, signaling the cessation of farming rewards.
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LooksRare tokenomics revamped
The updated blueprint accentuates a re-distribution of the platform fees: 50% will serve to repurchase $LOOKS tokens from the market, 10% is earmarked for LooksRare protocol rewards, while a hefty 40% will fuel the treasury. This tactical move comes with an underpinning ethos of ensuring a sustainable protocol that transcends the termination of LOOKS emissions.
In the prior model, half the fees from fresh ventures were channeled into buying back $LOOKS from the open market, enriching the treasury with a substantial 1,800,000 $LOOKS. With the reformed strategy, the platform has opted for a more nuanced allocation, aiming to buttress the protocol over an extended timeframe.
Going forward, fees generated from new initiatives will see a tri-pronged distribution. Besides repurchasing LOOKS, an allocation for protocol rewards and a substantive portion funneled into the treasury underscores a profound commitment to buttressing the platform’s overarching protocol.
The updated mechanics took effect today at 9:00 AM (UTC), marking a new milestone for the renowned NFT marketplace.
Diminished selling pressure
The rationale behind this pivot emanates from an analysis of the trading rewards’ impact. Despite its success in amassing ETH for protocol rewards, the daily sell pressure generated has reportedly been significant. Thus, reallocating these LOOKS is aimed at optimizing efficiency and propelling both new and existing products.
LooksRare affirms the claims for any previously earned trading rewards, a continuity in marketplace fees flowing into protocol rewards, and the ability to earn LOOKS from protocol rewards remaining unchanged.
With these bold steps, LooksRare aims to bolster its operational framework and extend its growth trajectory in the NFT space.
