Leading NFT marketplace LooksRare announced it will no longer support creator royalties by default and is making it optional.
According to the announcement, LooksRare will be directing 25% of protocol fees to creators and removing standard creator royalties.
The buyers can still choose to pay royalties when purchasing an NFT but this will be on an optional basis.
95% of Trading Rewards will now go to sellers and 5% to buyers in order to achieve almost 0% seller fees. This adjustment will result in reimbursement for sellers that more or less cancels out the 2% protocol fee.
Collections would receive 0.5% of its 2% protocol charge, provided that it has a receiving address.
From the Trading Rewards calculation period beginning at 9:00 AM UTC on October 28th, 2022, the new distribution ratio will be in effect.
Now, the Listing Rewards leaderboard will only consider 24-hour volume based on OpenSea. This indicates that the volume on LooksRare won’t be taken into account for the current LooksRare plus OpenSea volume ranking.
LooksRare took this decision as the prevalence of zero-royalty marketplaces has reduced the NFT industry’s overall willingness to pay royalties.
The NFT marketplace decided to take the initiative by developing a competitive approach that nevertheless helps creators by redirecting protocol fees to creators.
“This approach allows us to offer the most favorable conditions to NFT sellers, while still supporting creators/collection owners,” LooksRare notes.
Also Read: Magic Eden Adopts Optional Royalties
