LooksRare Releases The BIG LOOKS Tokenomics Update
With the BIG LOOKS tokenomics update, LooksRare has added generated fees from raffles and other new initiatives to Protocol Rewards through a new strategy that makes it possible to continue to accrue additional fees over time.
The BIG LOOKS Tokenomics Update Details
On October 1st at 9 AM UTC, the tokenomics update went live, introducing generated fees to Protocol Rewards. The marketplace has recently used 50% of fees from new initiatives in order to buy back LOOKS, resulting in 1.8 million tokens going to the Treasury. However, with the new update, the team has decided to “take things a step further,” adding fees from raffles and more initiatives to Protocol Rewards. As a result, the team’s new strategy involves splitting fees generated from new initiatives in the following way: 50% is used for buying back tokens from the market, 40% is sent to the Treasury, and 10% is possible to earn as Protocol Rewards.
This new update provides a new model to Protocol Rewards that makes it possible for additional fees to be accrued, with the developers teasing in the announcement that fees from other chains might also make their way at some point.
Increased Focus On On-Chain Gaming
The blog post for the update also talks about what’s next in store, with the team revealing that their journey into on-chain gaming has been a “very positive experience.” As a result, they plan to continue on this path with increased focus, teasing that something is coming soon and that “a few product offerings” are almost complete, all of which will provide further benefits to Protocol Rewards.
This new update also marks the end of Trading Rewads. All tokens that were allocated for this before will go to the Treasury to be used “as incentives for future products and initiatives.” The decision to discontinue Trading Rewards has been made due to the daily sell pressure it was causing. By making this change, the team aims to make sure that the tokens are “allocated in the most efficient way possible, while further incentivizing new and existing products.”