LOOKS is the official token of the LooksRare NFT trading platform. Introduced at the platform's launch in January 2022, LOOKS plays a central role within the LooksRare ecosystem. It is utilized for various purposes, including governance, staking, and rewards, making it an integral part of the platform's functionality and user engagement.

Value and Problem Solving

The LOOKS token holds value by offering a range of benefits to users and addressing specific challenges in the NFT market. By allocating a substantial portion (75%) to the community, LOOKS encourages community involvement and active participation in the platform's decision-making processes. The LooksRare platform also has a unique feature where they have a NFT rarity rank for users' easy reference. Additionally, LOOKS serves as a tool for providing rewards to users engaged in NFT trading, thus incentivizing active participation. The token also supports staking, with 18.9% allocated for staking rewards, creating an additional incentive for users. In this way, LOOKS contributes to platform liquidity and user engagement while addressing the needs and challenges within the NFT market.

Tokenomics and Associated Risks

The tokenomics of LOOKS involve a significant allocation to the community (75%). A portion of LOOKS tokens (44.1%) is designated for trading rewards, providing users with an incentive to actively trade NFTs on the LooksRare platform. An additional portion (18.9%) is reserved for staking, encouraging users to stake their LOOKS tokens, potentially earning rewards while contributing to the platform's overall liquidity.

However, there are associated risks to consider. Here are two specific concerns:

• Cash-Out Incident: In February 2022, there was a revelation that LooksRare team members had staked LOOKS tokens for income and subsequently cashed out a substantial amount. This incident raised questions about the team's behavior, transparency, and its impact on user trust and the token's value.


• Transaction Mining Model: The article points out that LooksRare's use of a "transaction mining" model, similar to practices that have led to issues in the crypto space in the past, could pose risks. If not carefully managed, this model might lead to undesirable behaviors such as volume manipulation and, in turn, harm the platform's reputation and quality.