LooksRare updates marketplace to offer optional royalties
LooksRare announced a switch to optional royalties, following the growing list of marketplaces who also made the same business model switch.
As of Oct. 27, the marketplace no longer supports creator royalties by default, and instead shares 25% of the LooksRare Protocol fee with creators and collection owners.
As opposed to allowing NFT creators to determine the royalty percentage (usually set between 5% and 15%), the marketplace will direct 1.5% of trade to LooksRare and the remaining 0.5% will be used to collect fees. Meanwhile, 95% of trading rewards will benefit sellers and 5% will be directed to buyers.
NFT buyers are now able to opt-in to pay optional royalties at checkout.
The marketplace explained the switch will enable LooksRare to offer the most ideal trading environment for NFT sellers while simultaneously supporting creators and collection owners.
LooksRare’s decision is part of a growing trend among NFT marketplaces that have started to remove royalty requirements, including Magic Eden, Rarible, Dapper Labs, and Jump.trade.