🟢 1️⃣ Targeted Incentives to Attract Liquidity
1️⃣ Professional Trader Programs
Launch “volume incentive” campaigns aimed specifically at professional traders. For example, reward the top 1,000 wallets by trading volume with LOOKS airdrops.
To avoid pure wash trading, introduce requirements like minimum holding periods or a threshold for collection diversity.
2️⃣ Collection-Based Incentive Pools
Create dedicated incentive pools for popular collections (e.g., BAYC, Azuki) to stimulate activity.
Offer combined rewards such as LOOKS tokens and discounted royalties for trading these collections.
3️⃣ Dynamic Fee Rebates
Implement a dynamic fee rebate structure.
For example, wallets executing over $1M in weekly volume could receive a 50% fee rebate.
🟢 2️⃣ Product and User Experience Improvements
4️⃣ NFT Lending and Collateralization
Blur has gained significant traction with its NFT lending module.
LooksRare should consider integrating collateralized NFT lending as soon as possible to diversify volume sources.
5️⃣ Aggregator Mode
Develop an aggregator feature so users can purchase listings across multiple marketplaces in a single transaction.
This is one of the reasons Blur maintains high liquidity.
6️⃣ Collector Analytics Tools
Offer advanced analytics dashboards for traders to track their portfolios, floor price movements, transaction histories, and arbitrage opportunities in real time.
🟢 3️⃣ Token Model and Community Engagement
7️⃣ Revamp Staking Rewards
Current staking yields have lost their appeal.
Consider increasing the percentage of platform fees distributed to stakers (e.g., from 30% to 50%) and offering bonuses for longer lock-up periods.
8️⃣ Managed Token Unlock Schedules
Instead of linear unlocks, introduce a “vesting on performance” model.
If platform volume targets are not met, token unlocks could be postponed, motivating investors to actively support growth.
9️⃣ DAO and Community Grants
Set aside treasury funds to support collections or trader communities that bring significant volume to the platform.
This can help build long-term loyalty and grassroots growth.
🟢 Quick Wins with High Impact
Short-Term Priorities:
✅ Dynamic fee rebates and volume incentives
✅ Fast implementation of NFT lending
✅ Collection-specific trading rewards
Medium- to Long-Term Priorities:
✅ Strengthened staking reward structures
✅ Aggregator experience improvements
✅ Performance-based token unlocks
In summary, the main issues LooksRare faces are:
Remaining passive while Blur aggressively incentivizes volume,
Falling behind in product innovation,
Losing token utility as trading activity declines.
These proposals could help increase volume sustainably while reinforcing the token’s market relevance.