One of the top NFT marketplaces in the world, LooksRare, recently declared that it would no longer pay creative royalties. LookRare aims to compensate creators/sellers 25% of its 2% platform fee in place of the standard royalties. Additionally, to further favor sellers, the company improved its Trading Rewards distribution ratio. The action intends to combat the overall “zero-royalty” craze that is sweeping the NFT industry.
What Problem Is NFT Royalties Solved By LooksRare?
There has been an ongoing dispute between creators and collectors as the NFT market tends toward zero royalties. The newest company to follow the zero-royalty trend is LooksRare. The marketplace is not the first to provide an option for zero-royalty trade cost, but it is the first to put out protocol fees in support of creators. The NFT marketplace said on Twitter, “It’s not our position to decide who deserves royalties or how much, but if you want artists and creators to be able to go all out, produce fun stuff, and give back, they probably need your support.”
Although it can appear to be a wonderful idea, creators have given up the ability to decide how much of each sale’s royalty they receive. When this news was made, there were conflicting opinions on Twitter. While some consider it to be a novel option, others minimize the consequences of the choice. Some users think that this would eventually allow markets to accept creator royalties. Royalties were not a contentious topic during the bull market, but the general attitude has changed against them during the down market.
How Are Royalties Paid On LooksRare?
Royalties can still be paid by buyers if they so want. The personalized royalties that collectors specify during checkout, on top of the price of purchase, support creators.
LooksRare gains an advantage over rivals by addressing the age-old debates over creator royalty rates. The action prioritizes the requirements of the maker. Additionally, LooksRare surpasses entirely zero-royalty platforms like Magic Eden and X2Y2 by contributing a share of platform expenses. If you already set your royalty as a creator on LooksRare, there’s no need to do it again! Each time one of your creations is sold on LooksRare, 25% of the transaction fee goes to the recipient address you provide.
For the purpose of clarity, LooksRare is distributing 25% of the 2% fee on each NFT’s sales price. This means that instead of paying royalty costs, the seller will receive 0.5% of the NFT sales fees. It’s encouraging to see LooksRare offering what might be the solution to web3’s royalty issue, even though many web3 producers have dubbed the new fashion the “race to the bottom.”
What LooksRare Is
LooksRare is an NFT marketplace with a strong sense of community that claims to have been created “by NFT people, for NFT people.” The NFT marketplaces launched in January 2022 under the leadership of “Zod” and “Guts,” two unidentified entrepreneurs. Through $LOOKS, the platform’s native token, it actively compensates its community. To find out the latest NFT drops, follow our NFT calendar.