Following our emissions schedule, we’re about to exit Phase 2 of the LOOKS token emissions, and head into Phase 3. In the short term, this means a reduction in the number of LOOKS earned as rewards, but long term, this change represents LooksRare’s progression out of the initial growth stages, into a period of more sustained, organic growth.
We want to make sure everyone knows exactly what’s changing.
🆕 Phase 3 Begins
In Phase 3, starting at block 14757012 (estimated to be May 11th, 8:51pm UTC at the time of writing), the total LOOKS entering circulation every block will reduce from 380 to 150 LOOKS per block. This will affect staking rewards, volume rewards (listing and trading rewards), and team- and treasury-managed LOOKS
Despite the reduction in rewards from emissions, the LooksRare Treasury will also be adding ✨additional daily rewards✨– more on this below.
Phase 3’s emissions of 150 LOOKS per block will run for 1,560,000 blocks (~8 months) until block 16317012, after which another emissions reduction will bring us into Phase 4.
|Rewards Type||Current Base LOOKS/day||Phase 3 Base LOOKS/day||Phase 3 Additional Daily Rewards||Phase 3 Total Daily Rewards|
|Listing||100,000 + bonus||100,000 LOOKS (15.38/block) until June 11||200,000 LOOKS Until June 11, further adjustments later|
|Staking||230,343.75*||100% of WETH Platform Fees||230,343.75* LOOKS + 100% of WETH|
*(Estimates based on 6,500 Blocks/day)
Listing Rewards (LOOKS)
Since the launch of Listing Rewards, the total number of new listings added on LooksRare each day is up over 400%!
After the recent V2 launch, we’ve also seen even better liquidity for items close to the floor price. We’re confident that the listing rewards also greatly helped LooksRare achieve our highest organic volume day ($80.5M) since launch on May 1st due to higher liquidity and number of listings on the platform.
After seeing how hugely popular the listing rewards program has been, along with the positive effect on user activity, sales volumes, and liquidity depth, the LooksRare Treasury will allocate 100,000 LOOKS daily to the Listing Rewards pool for the first month of Phase 3, making a total of 200,000 LOOKS earned per day. This will continue for the first month, and we’ll re-evaluate it before the start of the next month of rewards.
From 2022/05/12, the total daily listing rewards will reduce from 250,000 → 200,000 LOOKS:
- 100,000 LOOKS per day directly from emissions
- 100,000 LOOKS per day injected from the LooksRare Treasury until 2022/06/11: we’ll reassess the quantity of LOOKS injected by the Treasury later on.
The specific dates of the changes for listing rewards are:
|Listings Recorded between||Total Daily Listing Rewards||Rewards Claimable from|
|Phase 2 Final Day||2022/05/11 9:00 AM – 2022/05/12 9:00 AM (UTC)||250,000 LOOKS||2022/05/12 11:00 AM (UTC)|
|Phase 3 First Day||2022/05/12 9:00 AM – 2022/05/13 9:00 AM (UTC)||200,000 LOOKS||2022/05/13 11:00 AM (UTC)|
Trading Rewards (LOOKS)
From 2022/05/12, the total daily trading rewards will reduce from 1,111,587.5 → 437,468.75 LOOKS.
The specific dates of the changes for trading rewards are:
|Volume Recorded between||Total Daily Trading Rewards||Rewards Claimable from|
|Phase 2 Final Day||2022/05/11 9:00 AM – 2022/05/12 9:00 AM (UTC)||1,111,587.5 LOOKS||2022/05/12 11:00 AM (UTC)|
|Phase 3 First Day||2022/05/12 9:00 AM – 2022/05/13 9:00 AM (UTC)||437,468.75 LOOKS||2022/05/13 11:00 AM (UTC)|
Staking Rewards (LOOKS + WETH)
- From block 14757012, the amount of LOOKS earned per block by LOOKS stakers will reduce from 89.775 → 35.4375 LOOKS.
- This change applies to LOOKS staked in both the LOOKS Compounder and the standard LOOKS Staking.
- 👌100% of LooksRare’s platform fees (WETH) will continue to be earned by LOOKS stakers.
🔭👀 The Future
Since the beginning, the LOOKS token has followed a predefined two-year token emission schedule.
Rewards to incentivize volume (trading rewards at first, followed by the recent addition of listing rewards) have been key in bringing NFT collectors to the platform during our early stages of growth, especially as we build the groundworks of the product together with you, the community.
As our product offering improves and expands, we anticipate that the proportion of organic volume on LooksRare will continue to grow, and the reliance on incentives will decline.
We look at each emission reduction as a great step towards a self-sustaining ecosystem powered by LOOKS: with each reduction, the power of the LOOKS token as a means for stakers to earn 100% of the platform’s WETH trading fees becomes ever more clear.
That being said, it’s clear how effective the incentives are in bringing volume to the platform (and tbh, it’s really exciting coming up with improvements and awesome new stuff like the Listing Rewards program). That’s why the Treasury will be allocating a total of 3,000,000 LOOKS to the Listing Rewards program to distribute in the first month of Phase 3. Beyond that, we’ll be assessing additional allocations on a rolling 30-day basis.
We’d be really glad to hear your feedback on this move in our Discord or on Twitter.
Can you believe it’s only the start of month 5? We're literally just getting started.