Since its launch in January 2022, NFT enthusiasts have been trading on the new LooksRare NFT marketplace. As a perk to trading assets from specific collections, the platform rewards users with a percentage of LOOKS tokens distributed at the end of each day.
While users can choose to hold or sell the tokens, many have turned to another opportunity on the site, staking. Staked tokens can earn additional LOOKS over time, increasing the user’s potential earnings.
Staking on LooksRare
Once you have LOOKS tokens (scroll down to find out how to get them if you don’t have them already), you can stake them on the NFT marketplace’s website. Here’s how:
Step 1: Make sure that you have the LOOKS tokens in your MetaMask (or another compatible web3 wallet) account and that it is synced with LooksRare.
Step 2: On LooksRare.org, click on the “REWARDS” tab at the top of the browser.
Step 3: Under the “Your Stake” section, input the number of LOOKS tokens you wish to stake on the site. You can choose any amount up to the MAX amount of tokens you own. The box will show what you will likely earn as a reward for staking the crypto.
Step 4: When you are satisfied with your decision, click the green “Stake” button to finalize the transaction. You will be able to earn LOOKS and WETH through staking on the platform.
LooksRare Staking Rewards
There will be 4 phases of earning for people who stake their LOOKS tokens. Each will last a pre-determined number of days and a set amount of tokens will be awarded to people who are staking on the platform.
The phases will work as follows:
- Phase A will last for 30 days. During that time, 1,228,500 LOOKS will be distributed to stakers per day.
- Phase B will last for 90 days. 583,537.50 LOOKS will be distributed per day during those three months.
- Phase C will last for 240 days. Each day during the phase, the platform will distribute 230,343.75 tokens per day.
- Phase D will last for 361 days. Stakers will receive a portion of 122,850 LOOKS tokens per day, as distributed by the platform.
Those who stake LOOKS tokens on LooksRare will receive a portion of rewards per block based on the percentage of tokens they own in the overall pool. As people continually stake or withdraw their claims, this amount will fluctuate day after day.
Auto-Compounding LOOKS
LOOKS stakers have their trading rewards automatically compound over time. While investors have traditionally been able to reinvest their tokens manually, this system allows people to choose to reinvest their LOOKS rewards without having to pay additional gas fees each time they want to stake.
Both the original staked tokens and compounded tokens will be withdrawn when the user chooses to unstake their tokens.
How to Get LOOKS Tokens
In order to stake LOOKS on LooksRare, you will first need to acquire LOOKS tokens. There are several ways you can receive them:
- Airdrop – If you were a part of LooksRare’s official launch, you may have received some of the 12,000,000 tokens the platform handed out as incentives to join. Several OpenSea users converted to the new NFT marketplace during this time and took advantage of the LOOKS airdrop.
- Trade NFTs – The most popular way to collect LOOKS tokens is through trading NFTs from eligible collections on the LooksRare platform. Collectors will receive tokens daily depending on the total trading volume on the defi platform during that particular day. Nearly 3 million tokens will be distributed to eligible accounts depending on how many NFT collections each traded that day. This has encouraged a lot of wash trading on the platform, especially as trading fees are waived for private sales. All NFTs sold on the platform are based on smart contracts on the Ethereum blockchain.
- Purchase – You can purchase LOOKS tokens on a number of exchanges including Uniswap. Simply trade ETH or another cryptocurrency for the LOOKS tokens.
- Staking – Those who choose to stake on the platform will earn additional tokens throughout the time the tokens are staked.