The NFT marketplace has introduced short-term zero-selling fees and long-term reductions to attract users in a crowded field.
30-Day Fee Holiday for Sellers
LooksRare recently announced a promotional zero-fee policy for NFT sellers on its platform. Starting on November 16th, all fees are waived for 30 days on sales until December 16th.
During this period, sellers receive 100% of the sales proceeds. LooksRare absorbs the fees to incentivize sellers to list NFTs on their marketplace over rivals.
V2 Cuts Trading Fees Long-Term
Alongside the temporary fee suspension, LooksRare reduced overall trading fees in April with Version 2 of its marketplace. Trading fees dropped from 2% to just 0.5%—a significant 75% discount.
This competitive rate reduction intends to attract more traders and boost activity by lowering transaction costs. The savings contribute to a more appealing and cost-effective trading experience.
Shift to Zero-Royalty Model
In addition to the trading fee cut, LooksRare shifted to a zero-royalty structure in October. This removed mandatory NFT creator royalties.
Instead, LooksRare allocates 25% of its protocol fees to creators and collection owners. This compromise attempts to balance the zero-royalty trend while still rewarding creators in some capacity.
Response to Competitive Pressures
LooksRare’s moves tie directly into rising competition between NFT marketplaces like OpenSea and X2Y2. Lowering and waiving fees aims to draw users towards LooksRare’s platform.
These incentives encourage sellers to list NFTs on LooksRare over rivals during the promotional period to benefit from zero selling fees. Reduced trading fees also improve liquidity in the long term.
Community Response Mixes Optimism and Concern
The NFT community response mixes optimism and concern. While some praise LooksRare for supporting creators and lowering buyer costs, others worry about devaluing creators in the long run.
If zero fees become an expectation, artists may receive less ongoing income from secondary sales. But for now, the savings present an opportunity. Buyers and Sellers Set to Benefit In the short term, both NFT buyers and sellers benefit from reduced fees. Sellers earn maximum profits while buyers save on transactions during this promotional window.
Whether LooksRare can convert this activity into loyal long-term users after fees resume will be an important metric to watch. Long-Term Impacts Remain Unclear The lasting impacts of LooksRare’s fee changes remain uncertain. While positive for users, drastically slashing fees and royalties may devalue NFTs and creators in the future.
However, LooksRare maintains it is committed to empowering creators with fair rewards as the market evolves. The company claims its zero-royalty model will develop over time to serve all stakeholders.
Other Marketplaces Feel Pressure to Adapt
LooksRare’s fee shakeup also pressures competitors to reassess their fees to remain attractive. If they don’t match the savings, they risk losing activity.
This could spark a “race to the bottom” as platforms compete aggressively on fees at the expense of revenues. Marketplaces must balance competitiveness with sustainability.
NFTs Enter the Spotlight
LooksRare’s moves cast an industry spotlight on the unclear path forward around NFT marketplace fees and royalties. As mainstream adoption grows, these dynamics may still take time to stabilize.
However marketplaces recognize the need to continually adapt to user expectations in the fast-moving NFT and crypto sectors. Prioritizing affordability and incentives appears to be the strategy of the hour
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