LooksRare, a prominent NFT marketplace, has recently announced a significant change in its fee structure, introducing a zero-fee policy on NFT sales for a limited period.
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Zero fees frenzy: A 30-Day windfall for sellers
From November 16, LooksRare has waived all selling fees on NFTs for 30 days, a policy ending on December 16. This temporary suspension of fees allows sellers to collect the full sale price of their NFTs during this period.
The decision reflects an effort by the NFT marketplace to attract more sellers and increase activity on its platform by offering a cost-free selling experience, albeit temporarily.
Version 2 brings reduced trading fees
Coinciding with the zero-fee period, LooksRare’s launch of Version 2 (V2) in April included a significant fee reduction. Trading fees were cut by 75%, from 2% to 0.5%. This reduction makes trading on the marketplace more cost-effective and appealing to a wider range of users within the NFT market.
Additionally, as of October 27, 2022, the NFT marketplace implemented a zero-royalty trading model. In this model, the platform no longer supports creator royalties by default but instead allocates 25% of its protocol fees to creators and collection owners.
This approach represents a balancing act between adapting to zero-royalty market trends and maintaining some level of support for creators.
Analyzing LooksRare’s market strategy
The introduction of a zero-fee selling period, alongside the Version 2 upgrade and the shift to zero-royalty trading, signifies LooksRare’s adaptability in the NFT market. These changes appear to be a response to the competitive dynamics of the industry, aiming to attract more users to the platform by offering financial incentives.
While these changes may appeal to sellers and traders by offering more financially attractive conditions, their long-term impact on the platform and the wider NFT market remains to be seen.