SNEAK PEEK
- LooksRare joins the league of zero royalty marketplaces.
- The NFT marketplace removes the creator royalty feature from its platform.
- The platform will offer a percentage of its protocol fees to the creators.
The NFT community is going through a major transformation over the past few months. Popular NFT marketplaces like Magic Eden, SudoSwap, and X2Y2 have gone zero royalty.
Though the NFT community appears divided on the issue of creator royalties, another big name joins the zero royalty group.
LooksRare an Ethereum NFT marketplace has made creator royalties optional on its platform. The decision has been taken amid the hot trend of NFT marketplaces eliminating royalties.
LooksRare wrote in its blog post,
Starting today, LooksRare will no longer support creator royalties by default, and instead share 25% of the LooksRare Protocol fee with creators/collection owners.
LooksRare is offering traders not to pay royalty fees starting from October 28th, 2022. The platform has come out with a new trading rewards system to support the creators while making it feasible for traders to transact NFTs.
The platform is dedicating 25% of its protocol fees to the creators. According to the blog post, 1.5% of the protocol fees will go to the LOOKS stakers and 0.5% will go to the collections if the creators have set up an address.
Regarding the trading rewards, LooksRare says that 95% of the trading rewards will go to the sellers and the rest to the buyer.
Talking about why the platform is going through such a change, LooksRare says,
The growth of zero-royalty marketplaces has eroded the general willingness to pay royalties throughout the NFT space. Good news for traders, but with a big downside: the move away from royalties has removed an important source of passive income for most creators.
That’s why we’re choosing to lead the charge in this new landscape, by creating a competitive solution that still benefits creators: diverting protocol fees directly to creators.
Buyers will still have the option to pay the royalty fees or not. But one should note that 25% of the protocol fees paid by the sellers will also go to the creators.
LooksRare NFT marketplace was launched in January 2022. It rapidly gained popularity with its new reward system that gave users LOOKS and ETH tokens for trading through the platform.
