LooksRare
Crypto Overview
Purpose and Utility
LooksRare is an NFT marketplace launched in January 2022 as a competitor to OpenSea. The LOOKS token serves as the platform's native token, primarily used for governance and rewards distribution. Users who stake LOOKS tokens earn platform trading fees and can participate in platform governance decisions.
Business Model
The platform generates revenue through trading fees on NFT transactions. When users trade NFTs on LooksRare, a 2% fee is charged, with 100% of these fees distributed to LOOKS stakers. The platform also features a rewards program where users earn LOOKS tokens for trading NFTs.
Real-World Adoption
LooksRare has established itself as one of the major NFT marketplaces, though trading volume has decreased significantly since its initial launch. The platform continues to maintain active development and regular updates to its protocol.
Token Distribution and Governance
The token distribution includes allocations for the team (10%), treasury (21.5%), and trading rewards (68.5%). Team tokens have vesting periods, indicating measures against immediate dumps. The platform demonstrates transparency in its operations and token economics.
Revenue Model Analysis
The platform's revenue model is based on facilitating legitimate NFT trades and distributing fees to stakeholders. This model involves actual asset exchange and value creation through the NFT marketplace infrastructure, without relying on interest-bearing mechanisms or prohibited activities.
Crypto Impact
To assign a comfort level investing in LooksRare from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to LooksRare.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.