5 months ago 4 min read

LooksRare is the Newest NFT Marketplace to Eliminate Royalties, Among Other Things


LooksRare is the most recent nonfungible token (NFT) market to do away with enforcing creator royalties by default, joining the likes of Magic Eden and X2Y2.

On October 27, the platform tweeted that it will not automatically support creator royalties, instead deciding to distribute 25% of its protocol fees to NFT creators and collection owners. When buying an NFT, buyers can still decide to pay royalties, but only if they want to.

In an explanation of the changes, it stated that collections would get 0.5% of its 2% protocol charge, provided that collections have a receiving address for the money.

LooksRare claimed that as a result of many NFT markets switching to a zero-royalty model, the desire of consumers to pay royalties has "eroded," and that this disadvantages creators by losing a source of passive revenue.

It claims that by using its fee-sharing approach with creators, it hopes to develop a "competitive solution" for this reason.

The community's response was divided, with some applauding LooksRare for its revenue-sharing scheme while others, like well-known Twitter NFT statistician NFTstatistics.eth, didn't understand the point.

They tweeted, "I wouldn't say that providing artists 0.5% [...] is a competitive approach that favours creators. The average royalty paid is roughly 6%."

In this "race to the bottom," everyone is striving to survive, he continued.

Testing Token Tweeting Tiles on Twitter

On October 27, Twitter's development team said that it is testing "NFT Tweet Tiles," which display links to NFTs on the platform along with a larger image, information about the NFT, and the name of its author.

Currently, Rarible, Magic Eden, Dapper Labs, and Jump.trade are supported NFT markets. It follows the platform's January rollout of NFT profile images, which were solely available to paying users of Apple iOS.

Leaked internal Twitter documents reveal the company discovered that the topics of interest among English-speaking heavy users of the platform have changed over the last two years, with one of the highest-growing topics now being cryptocurrencies. The new feature may be an attempt by Twitter to placate its most active users.

Additionally, there are rumors that Twitter is creating a cryptocurrency wallet. However, neither evidence nor a response from Twitter have been provided in support of the claim. Regardless, there is widespread speculation that it may be in the works as a result of the company's acquisition by crypto-friendly Elon Musk.

EPL Signs $35 Million NFT Contract With Sorare

According to Sky News, the English Premier League (EPL), the top men's professional soccer league in the country, is close to finalizing a nearly $35 million (£30 million) NFT agreement with the Ethereum blockchain-based fantasy soccer game Sorare.

In the trading card game Sorare, players manage teams by buying, selling, and trading NFTs player cards. Based on how well the team performs on the field, it can compete in tournaments and win in-game points.

On October 28, the EPL will conduct talks with its 20 clubs about the rumored multi-year contract. The arrangement is said to center on static photos of EPL players assigned to NFTs, allowing fans to buy, own, and probably trade them.

It was reported in March that the EPL hired blockchain company ConsenSys for an NFT deal that was reportedly worth more than $300 million. However, according to Sky News, a decline in NFT prices forced ConsenSys to renegotiate the agreement's price in order to make Sorare's offer more appealing to the league.

According to reports, the EPL and blockchain company Dapper Labs are also in talks about a separate agreement.

OpenSea Loses Ground to the New NFT Market In Terms of 24-Hour Trading Volume

According to Dune statistics, the new NFT marketplace and aggregator Blur reached a record high of 1,610 ETH, or around $2.5 million, in 24-hour trading volume on October 26. This put it second only to the largest marketplace Opensea.

On that particular day, it outperformed its competitors LooksRare and X2Y2 in terms of market share, and it celebrated the achievement on Twitter.

On October 19, the beta version of the Ethereum-based platform became live, and anybody who had traded NFTs in the previous six months received an airdrop of the site's native currency, BLUR. It claims to cater to "pro traders" and offers optional royalties in addition to no trading expenses.

The same day, NFT marketplace X2Y2 tweeted that it wanted Blur "to cease using our listings on your website" and then stopped Blur from using its platform on the grounds that it had broken the terms of service by using numerous application programming interface (API) keys.

J.K. Tan
J.K. Tan
A crypto enthusiast who thinks that cryptocurrencies encourage people to act as their own banks. Fascination for blockchain and Web3 projects is his A-game.
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