Streamline Rewards with Direct LOOKS Tokens#177

I’m writing to propose an update to LooksRare’s rewards system - providing direct LOOKS token payouts to users instead of the current Gem to LOOKS system.

Currently, users earn Gems which represent a share of the LOOKS rewards pool. They must then manually convert these to LOOKS before using them on-platform. This adds confusing extra steps and reduces transparency into how many LOOKS are actually earned.

I propose moving rewards entirely into LOOKS tokens, paid directly to users’ wallets. The amount would be equal to the Gems they would have previously earned.

For example:

User earns 100 Gems
Instead of Gems, they now get 100 LOOKS deposited in their wallet
Benefits:

Increased transparency - Users will know exactly how many LOOKS they’ve earned. No more tricky Gems conversions.

Improved usability - LOOKS can be immediately used for staking, governance, discounts, etc without converting.

Aligns incentives - Direct LOOKS rewards will better incentivize engagement as users are motivated by the token itself.

Promotes adoption - More visibility and utility for LOOKS both on and off the platform.

There are some potential impacts to consider:

Faster LOOKS circulation - Direct rewards could increase token velocity and downward price pressure short-term.

Budgeting - A fixed LOOKS reward budget would allow controlling circulation.

Exchange sell pressure - More rewards = more supply on exchanges. Can look into burn mechanisms.

Utility value - Added use cases can offset increased circulation.

I believe the transparency and usability benefits are worth the potential drawbacks. The economics can be managed through careful planning. For example, maintaining a seasonal reward budget in LOOKS instead of Gems.

This change would align with community requests for direct ownership of rewards. I think it provides a smoother, more satisfying user experience overall.

Please let me know if you need any clarification or have additional questions! I’m happy to discuss optimization and make this transition as effective as possible. The community would really appreciate this improved rewards system.

Gems is also a marketing utility I believe, because people better get 10k gems than 10 looks they know isn’t worth much (no idea what’s the conversion rate). Also the conversion rate to looks is not fixed until the season ended you can earn an infinite amount of gems and the conversion depends on how much the others farmed. If you remove gems for looks directly you also stop the dynamic of trying to get more than the others until the end because you know exactly how many looks are left at any moment, how much you’ll get etc.