- LooksRare announced that as of October 27, it will no longer support creator royalties by default.
- The platform will share 25% of the LooksRare protocol fee with the creators/owners of the collection.
- LooksRare noted that buyers will be able to continue to choose to pay royalties when they purchase an NFT.
There is no doubt that the market for digital assets and all its by-products can be sometimes unpredictable, sometimes exciting and sometimes a little disappointing, but like a horse race, it has all its participants on the edge of their seats for the results of each race.
On this occasion, a new change has arisen amid the growing trend of the non-fungible token markets, since the NFT market, LooksRare announced that it will no longer require merchants to pay fees on transactions.
Zero royalties
Following in the footsteps of other markets such as Magic Eden and X2Y2the platform LooksRare noted that as of October 27, it will waive copyright royalties from creators by default.
Through a publication, LooksRare noted that “will no longer support creator royalties by default when merchants sell NFTs, instead allowing buyers to opt in to pay optional royalties“.
In a post made on his official Twitter account, the consortium stated it reaffirmed its position not to support copyright royalties from creators by default. Similarly, he pointed out that, instead, he would opt to share 25 percent of his protocol fees with the creators of non-fungible tokens.as with the owners of the collections.
Likewise, the firm indicated that, if desired, buyers can continue to choose to pay royalties when they buy an NFT, however, he was very emphatic in pointing out that this will already be a voluntary option.
How will the charges be readjusted?
Continuing with the explanation of the new changes, LooksRare noted that of the total fee it charges of 2 percent, on top of the sale price, 0.5 percent of its protocol fee will go to creators and collections, rather than their respective royalty fees, as long as the collection has a receipt address for the funds.
The Trading Rewards distribution ratio was also updated, in order to stimulate sellers, with the aim of achieving a 0 percent seller fee, through a bonus of the protocol fees paid.
One of the reasons that motivated the firm to implement these changes is because the willingness of buyers to pay royalties has “eroded”, in response to the growing presence of various NFT markets.
Due to the sheer size of market options available today, they are moving towards a zero-royalty model. Likewise, the consortium pointed out that these creators put others at a disadvantage, by eliminating a source of passive income.
To try to lessen the negative effects of the growing market, LooksRare plans to implement a “competitive solution” through its fee-sharing model with creators.
“That is why we chose to lead the charge in this new landscape, by creating a competitive solution that still benefits creators: diverting protocol fees directly to creators.”noted the firm in Twitter.
Model Modification
In addition to the above changes, LooksRare has implemented other actions in favor of creators, by changing its general model of commercial rewards to primarily benefit NFT sellers.
Thus, currently 95 percent of token rewards raised through trade will be allocated to sellers and 5 percent to buyers, in an effort to reduce net trading fees for sellers.
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