LooksRare is the community-first NFT marketplace with rewards for participating.
0 - 1,000%
Asset Class Return•1Y
LooksRare is the community-first NFT marketplace that actively rewards traders, collectors, and creators for participating. Part of being community-first means that LooksRare rewards, empowers, and gives back to the platform's users and creators. LooksRare’s smart contracts are custom-built within a modular system that enables new features to be rolled out over time–without compromising security–thanks to standardized signatures that clearly define the execution scope.
Things to Know
You make money on
Term of investment
Users that buy or sell NFTs from eligible collections earn LOOKS tokens
100% of trading fees are earned by LOOKS stakers
Creators get royalty payments at the moment of sale
See inside MoneyMade’s 6-figure multi-asset portfolio
How you make money
Earn by Staking - 100% of LooksRare’s trading fees are redistributed proportionally to LOOKS stakers.
Earn by Trading - You earn LOOKS every time you buy or sell an NFT from an eligible collection.
Earn by Providing Liquidity - Provide liquidity to the LOOKS-ETH pair on Uniswap V2 to earn additional LOOKS rewards on top of Uniswap’s regular liquidity provider rewards.
How LooksRare makes money
LooksRare collects a basic sales fee of 2% (in WETH) on all NFT sales excluding private sales. All the WETH collected from these fees are consolidated at the end of each recurring 6,500 Ethereum block period (roughly 24 hours) and then distributed to LOOKS stakers in a linear format per block over the next 6,500 block period.
Is it safe?
Over $5 billion worth of NFTs was traded on LooksRare in just the first ten days after the platform launch. The platform's coin LOOKS has traded as high as $7, which would give LooksRare a fully diluted valuation of over $7 billion.
From utilizing some of the world’s most powerful search infra, down to implementing on-chain standards like EIP-712 and ERC-2981, LooksRare’s technical architecture (contracts, database, API, front end, search) has been designed from the floor up for scalability, speed and security using the latest and greatest tech.
How you’re taxed
There are two tax considerations to be had when purchasing NFTs:
Buying an NFT using Crypto
When The IRS states that “if you exchange virtual currency held as a capital asset for other property, including for goods or for another virtual currency, you will recognize a capital gain or loss.”
For example - if you purchased a unit of ether for $100 in 2018, it would now be worth around $1,700. If you used that ether unit to buy a $1,700 NFT, you would have to pay tax on the gain of $1,600 as part of the NFT purchase. You would owe the IRS — assuming a top capital gains rate of 20% — a tax of $320. You’re not spending currency, you’re spending an appreciated asset.
Selling an NFT for profit.
Profits earned from the sale of NFTs, the same as crypto, are taxed like stocks (short and long term capital gains). Whenever you sell an NFT, you incur a capital gain or loss. For example, if you bought an NFT for $10,000 of ETH (this is your cost-basis) and then sold it for $15,000 of ETH, you would incur a taxable capital gain of $5,000.
No comments yet
14 days ago
18 days ago