➕ Commit LOOKS, earn LOOKS
When you commit LOOKS, you earn additional LOOKS — on top of WETH-denominated rewards generated from trades. Prefer to leave your committed LOOKS for the long-term? You can auto-compound them, too.
🥧 How many LOOKS tokens are allocated for Protocol Rewards?
Protocol Rewards will be earned over four phases with differing reward rates, based on a schedule of 6,500 Ethereum blocks per day.
|Phase||Length||LOOKS per Block||LOOKS per Day|
|A||195,000 blocks (30 days)||189.00 LOOKS||1,228,500.00|
|B||585,000 blocks (90 days)||89.775 LOOKS||583,537.50|
|C||1,560,000 blocks (240 days)||35.4375 LOOKS||230,343.75|
|D||2,346,250 blocks (361 days)||18.90 LOOKS||122,850.00|
🧮 How are Protocol Rewards calculated?
The following formula is applied to calculate the Protocol Rewards (per block) available to a given user.
- User A commits 10,000 LOOKS during Phase A
- The total amount of committed LOOKS is now 1,000,000 LOOKS
Based on the above, User A would receive:
🔁 What does auto-compounding mean?
On many platforms, pending rewards must be manually committed by users if they want to increased their total share of committed tokens. However, this comes with gas fees and opportunity cost.
LooksRare enables auto-compounding for users who commit LOOKS. Meaning that LOOKS rewards received from committing are automatically committed (or compounded) to increase the total share — without the usual fees.
When users remove their tokens, compounded rewards and the original amount are withdrawn to the user's wallet.
‼️ But wait, there's more!
We mentioned the WETH rewards generated by trades earlier.
On every sale (except private ones), LooksRare collects a fixed fee of 0.5%. All fees are consolidated every 6,500 blocks and distributed to LOOKS stakers over the next 6,500 blocks.
Once Phase D ends and LOOKS is no longer emitted, these ETH-denominated rewards will make up the entirety of the Protocol Rewards.
Active vs passive committing
So, the rewards for each day are calculated at the end of the previous period. Then, they're split between active and passive committers.
🏃 What's the difference?
Active committers earn additional LOOKS when they commit LOOKS. Passive committers do not.
But don't worry, you're probably an active one. Active committers are those whose tokens are fully unlocked. Passive committers, on the other hand, have their tokens locked for trading, but unlocked for committing. Usually, these are tokens coming from the Team, Treasury and Strategic Sale allocations (read more about their unlock schedules here).
At the start of every 6,500 block period, a portion of the WETH fees collected from the previous 6,500 blocks are sent to the passive committing address. The amount is calculated as:
- A = The total amount of LOOKS passively committed at the start of the period
- B = The total amount of LOOKS committed at the start of the period (both passive and active)
- C = The WETH fees accumulated from the previous 6,500 blocks
The remaining WETH is then sent to the active committing pool.
Fee sharing (for each 6,500-block period) is calculated for active committers as follows:
Each user’s amount of staked LOOKS at each block is then compared against the total amount of LOOKS staked at each block, with this being done at every block within the 6,500 block period to find the total amount of WETH rewards received.
Example time! Let's assume that LooksRare has 10,000 WETH of non-private sale volume in a period of 6,500 blocks. It would collect 50 WETH in fees, based on its 0.5% rate.
At Block #6,500, User A commits 10,000 LOOKS, preparing to start earning WETH at Block #6,501.
At Block #6,501:
the amount of passive tokens committed is 10% of the total amount of tokens staked — meaning that 5 WETH is sent to the passive committing address
The remaining 45 WETH is put into the active committing pool, with 0.00692307692 WETH to be earned per block for the next 6,500 blocks (45/6,500)
The total amount of LOOKS committed by all users is 1,000,000 LOOKS
As a result, User A will be allocated WETH at block #6501.
At Block #6,502:
- Assuming User A's stake doesn't change, but an additional 500,000 LOOKS are committed, then User A will be allocated
This calculation will then continue for another 6,498 blocks (as the example covers a 6,500-block period), with User A earning the amount specified in each example per block.
Meanwhile, the WETH fees generate during this period will be used as rewards to distribute in the next phase.
🤔 Frequently asked questions
How often can I claim my rewards?
As often as you want! However, bear in mind that you'll need to pay an Ethereum gas fee for each claim.
What happens if I forget to claim my WETH rewards for today?
Nothing at all. They'll be there whenever you want to collect them. You committed LOOKS will continue to accumulate rewards, so you can leave it until gas fees are low or until it becomes worthwhile to claim.
Why don't private sales count towards Protocol Rewards?
Unlike other marketplaces, LooksRare doesn't take a cut on private sales — so the volume generated by these doesn't contribute to the pile allocated to LOOKS stakers.