LooksRare
Crypto Overview
Intended Utility
LooksRare is a decentralized NFT marketplace launched in January 2022. The LOOKS token serves as the platform's governance and utility token, designed to reward active platform participants and enable community-driven decision making. The platform allows users to trade NFTs while earning LOOKS tokens as rewards for trading activity.
Business Model Analysis
The platform generates revenue through trading fees (2% base fee) on NFT transactions, with 100% of trading fees distributed to LOOKS stakers. The model focuses on incentivizing platform usage and community ownership rather than traditional interest-bearing mechanisms.
Actual Utility Assessment
The platform maintains active trading volumes and user engagement, though significantly lower than its initial launch period. On-chain data shows consistent NFT trading activity and staking participation. The development team regularly updates the platform with new features and improvements.
Token Distribution and Governance
Initial token distribution allocated 75% to the community, 10% to the team (2-year vesting), 10% to investors (2-year vesting), and 5% to the treasury. The vesting schedule demonstrates commitment to long-term development. Team tokens are subject to significant lock-up periods, reducing the risk of founder enrichment schemes.
Technology and Revenue Model
The platform's staking mechanism allows users to earn a share of trading fees without involving interest-based returns. The core technology facilitates legitimate NFT trading and ownership transfer, creating real utility through asset exchange.
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.