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Trading Rewards

Trade eligible NFTs on LooksRare. Earn LOOKS tokens. Simple. Trading rewards are a core part of LooksRare’s token economy as we seek to become the most liquid marketplace for NFTs in the world.

How do trading rewards work?

Users who trade NFTs from eligible collections on LooksRare earn trading rewards in the form of LOOKS, LooksRare’s platform token.

Both the buyer and seller of an item earn rewards for their trading volume (except for private sales).

Trading rewards are calculated daily and rewarded to users 2 hours after the end of each day. The entire schedule of trading reward emissions will be over 4,686,250 Ethereum blocks (or approximately 721 days, using 6,500 blocks per day), at which point all LOOKS token emissions will come to an end as the ecosystem becomes fully self-sustaining.

Please note that only trading volume on eligible collections will count towards the trading rewards calculation each day. Click here for further details about eligible collections.

How many LOOKS tokens are allocated for trading rewards?

Trading rewards will be earned over 4 phases with differing reward rates, based on a schedule of 6,500 Ethereum blocks per day.

PhaseLengthLooks Per Day For Trading Rewards
A195,000 blocks (30 days)2,866,500.00 LOOKS
B585,000 blocks (90 days)1,361,587.50 LOOKS
C1,560,000 blocks (240 days)537,468.75 LOOKS
D2,346,250 blocks (361 days)286,650.00 LOOKS

How are trading rewards calculated?

Every day, trading rewards are calculated based on each user’s trading volume in eligible collections, as a percentage of the total platform trading volume in eligible collections.

User A’s trading rewards on Day 1=ab×c\text{User A’s trading rewards on Day 1} = {\frac{a}{b}} \times c

Where:

  • a = User A's Trading Volume In Eligible Collections During Day 1
  • b = Total Platform Trading Volume In Eligible Collections During Day 1
  • c = LOOKS Rewards Per Day

Example

  • User A trades 10 ETH worth of NFTs from eligible collections on Day 1.
  • There is 10,000 ETH total volume on LooksRare from eligible collections on Day 1.

Based on the above, on day 1, User A would receive:

1010,000×2,866,500=2,866.5 LOOKS\frac{10}{10,000} \times 2,866,500 = 2,866.5 \text{ LOOKS}

How can I claim trading rewards? Trading rewards are available to claim at 2:00 AM (UTC) each day. Claiming is suspended for a period of 2 hours between 0:00 AM and 2:00 AM (UTC) each day while trading rewards are calculated.

At 2:00 AM (UTC) each day, you can claim your rewards via the Rewards page.

What are the eligible collections for trading rewards?

Any collection that reaches 1,000 ETH trading volume (excluding private sales) on LooksRare will be automatically added to the list of collections eligible for trading rewards. Once a collection reaches 1,000 ETH in volume, trading rewards will begin to be calculated from sales completed after 0:00 AM (UTC) on the next day.

For example, Collection ABC reaches 1,000 ETH in non-private sale volume at 21:00 PM (UTC) on March 10, 2022. Only sales completed after 0:00 AM (UTC) on March 11, 2022 will count towards trading rewards.

In addition, LooksRare has curated a list of 125 initial collections to be eligible for trading rewards straight away at the launch of the marketplace. starting on the day after the launch of the marketplace (updated). These collections were selected based on the following criteria:

Top 125 collections based on all time trading volume on Opensea, but excluded if:

  1. Able to mint freely to collection
  2. No sales for 3 months or more
  3. Collection grouping on Opensea has combined more than 10 different smart contracts

Note: We have included collections that were grouped by Opensea to include different smart contracts. This means the initial list of smart contracts eligible for trading rewards exceeds 125.

The full list of collections eligible for trading rewards can be found on the collections page.

What happens if there’s wash trading?

While we can’t guarantee that no project will attempt wash trading, the trading reward system has been designed to make it extremely unprofitable to do so.

Each trade on LooksRare (except for private sales) incurs a platform fee of 2%, and typically a royalty fee of between 5-10%. The total LOOKS rewards for trading each day are also fixed, and distributed based on traders’ contribution to total trading volume, meaning that there’s no guarantee of the amount of rewards that a wash trader could earn in a day.

For example, if multiple individuals try to wash trade on the same day, they’ll share the daily trading rewards with themselves and likely be at a loss when the cost of wash trading is factored in.

Will I receive trading rewards if I make purchases using NFT aggregators like Genie.xyz?

Maybe. When using aggregators like Genie.xyz to purchase NFTs, it is the Genie contract that interacts directly with LooksRare’s marketplace contract. This means that volume generated from users are actually attributed to the Genie contract address, along with any trading rewards.

We will be reaching out to aggregators like Genie.xyz to assist them in claiming the accumulated LOOKS rewards and to calculate the amount of rewards to be passed on to users of their platform.