LooksRare (LOOKS) analysis update.
As we highlighted in our YouTube channel, an important date is coming up for LooksRare, which could create price volatility.
That date is Feb 9th.
Starting that day, rewards for LOOKS staking and NFT trading will be halved:
Here’s the update report.
This will decrease the staking APR from the current 530%. Of that, about 200% is from LOOKS staking rewards and 330% from WETH distribution related to platform trading fess, which also go to LOOKS stakers.
Also, decreasing the trading rewards could negatively impact the wash trading volumes that have been on the platform, by some estimates 80%+ of the volumes.
And when wash trading diminishes, the platform will generate lower trading fees (2% of trading volumes) which get distributed to LOOKS stakers in form of WETH.
So what to do now? Wait to see how the rewards changes impact wash trading, staking APR and therefore the price.