NFT Marketplace LooksRare Switches to Optional Royalties
It joins a growing list of platforms that are choosing to forego royalty requirements as the default, including X2Y2 and Magic Eden.
Non-fungible token (NFT) marketplace LooksRare said in a statement on Thursday that it will no longer require collectors to pay royalties to creators when purchasing digital collectibles.
The platform, which has the fifth-largest trading daily volume among NFT marketplaces according to DappRadar, said that rather than supporting royalties “by default” it will instead distribute 25% of platform fees to creators and collection owners. Buyers can now “opt in” to pay royalties at checkout.
The platform’s “Trading Rewards” distribution ratio has also been updated to favor sellers.
“The growth of zero-royalty marketplaces has eroded the general willingness to pay royalties throughout the NFT space,” the company explained, adding that its new royalty structure is meant to be “a competitive solution that still benefits creators.”
LooksRare’s decision follows a trend of NFT platforms dropping requirements for artist payouts. In August, marketplace X2Y2 ended its royalty requirements, making them optional at the discretion of the buyer. And earlier this month, Solana blockchain-based marketplace Magic Eden followed suit.
While conversations around whether buyers should be obligated to pay royalties to NFT creators for their art, LooksRare specifies that its 25% protocol fee will still support both parties by sharing the burden associated with listing tokens on the platform.
“The industry is trending towards zero royalties, but it’s still our responsibility to support creators in the new landscape,” LooksRare said in the statement.
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