How to use LooksRare for NFT rewards? (Trading incentives)

Understanding LooksRare's Reward Mechanism

1. LooksRare operates a dual-token model where LOOKS serves as both governance and utility token, enabling users to participate in platform incentives through staking and trading activity.

2. Every trade executed on the LooksRare marketplace triggers a reward distribution event based on a fixed daily LOOKS emission schedule tied to volume thresholds.

3. Rewards are calculated per user using a proportional share of total protocol trading volume, with no minimum trade size required to qualify.

4. The system tracks all on-chain trades across supported collections, including ERC-721 and ERC-1155 assets, and assigns points based on net trading value.

5. Users must hold at least 1 LOOKS token in their wallet to be eligible for rewards, ensuring basic participation alignment with the ecosystem.

Eligibility Criteria for Trading Rewards

1. Only trades settled on the LooksRare smart contracts count toward reward eligibility—off-chain or third-party swaps do not contribute.

2. Each wallet address is evaluated independently; multi-sig or contract-controlled wallets must meet the same criteria as EOAs.

3. Rewards accrue only for trades involving verified collections listed on the official LooksRare collection registry.

4. Wash trading is actively monitored via on-chain behavioral analysis; detected patterns result in automatic disqualification from reward distribution.

5. Users must claim rewards manually within 90 days of accrual, after which unclaimed tokens are redistributed to active participants.

Claiming and Managing LOOKS Rewards

1. Rewards become claimable once the daily settlement cycle completes, typically within two hours after the UTC midnight checkpoint.

2. The claiming interface displays real-time breakdowns of accrued tokens by collection, trade date, and volume tier.

3. Users may choose to claim all available rewards at once or select specific batches based on timestamp or collection type.

4. Claimed LOOKS tokens are immediately transferable and usable for staking, governance voting, or secondary market sale.

5. Gas fees for claiming scale with Ethereum network congestion but remain constant per transaction regardless of reward size.

Staking LOOKS to Amplify Incentives

1. Staking LOOKS in the official vault increases reward weight multiplicatively based on locked duration and amount tiers.

2. Tiered multipliers range from 1.2x for 30-day locks up to 3.0x for commitments exceeding one year.

3. Staked tokens continue earning base trading rewards while simultaneously generating additional yield from the staking pool’s fee-sharing mechanism.

4. Early unstaking incurs a penalty equal to 10% of accrued staking rewards, deducted before release of principal.

5. The staking dashboard provides live APY estimates updated every 15 minutes based on current pool utilization and fee inflows.

Frequently Asked Questions

Q: Do I earn rewards when buying NFTs with ETH or only when selling?Yes. Both buy and sell transactions generate proportional LOOKS rewards based on gross trade value, irrespective of direction.

Q: Can I earn rewards using wrapped ETH (WETH) instead of native ETH?Yes. WETH is fully supported across all LooksRare trading functions and contributes identically to reward calculations.

Q: Are rewards distributed in real time or aggregated daily?Rewards are aggregated on a daily basis and made available for claiming after the settlement window closes at UTC midnight.

Q: Does transferring an NFT between my own wallets trigger a reward?No. Internal transfers do not constitute trades on the marketplace and therefore do not qualify for incentive distribution.