From OpenSea to LooksRare to X2Y2, and a New Dragon Quest Game

  1. Background
  2. The rise of OpenSea
  3. The story of LooksRare
  4. Disruptor X2Y2 sheds light on the nature of NFT platforms
  5. Summary
  • $LOOKS holders can stake their tokens to earn.
  • Buy eligible NFTs and get LOOKS rewards, the so-called “trade mining” (the series of NFTs have a transaction volume of more than 1,000 ETH)
  • As a market leader, OpenSea did not take the community seriously and ultimately chose to go public with an IPO rather than benefiting community users.
  • LooksRare seems to be breaking this mold, as it does take the community seriously, but it’s just the KOLs and whales in the community. It seems that its mechanism gives the community a way out, but this way out is to build a new base of the pyramid by distributing a small amount of interest to retail investors. It may work for a very long time, but it does not solve the pain points of product demand.
  • Initial Liquidity Offering 1.5% (1000 users, per capita 1.5ETH, total 1500ETH)
  • Liquidity management 1.5 %
  • Team 10 %
  • Airdrop 12 %
  • Staking reward 65 %
  • “Greater” and “Better” on the NFT trading platform represent whether enough high-quality NFTs have been listed, whether the prices are reasonable.
  • “Faster” is whether the platform itself is user-friendly enough.
  • “More economical” means lower fees and fewer transaction friction losses (relatively low priority)
  • The boundaries between buyers and sellers are blurred, and they are all consumers of corresponding products.
  • The trading needs are similar, and they all expect that there are plentiful and high-quality products on the market at reasonable prices.
  • Platforms need to be trusted to operate as intermediaries.
  • Expect low transaction rates and reduced frictional losses.
  • OpenSea: In the early days, OpenSea grasped the two cores of “Greater” and “Better”, and carried out long-term accumulation around the product itself. In an underdeveloped market, an easy-to-use platform will naturally attract high-quality products and traders, resulting in the flywheel effect described above. OpenSea eventually grew into a giant, and is now very solid, thanks to its unshakable collection of varieties, almost every NFT discussed on the market can be found on OpenSea, and usually at reasonable prices.
  • LooksRare: Efforts have been made on the two cores of “Faster” and “More economical” that OpenSea does not pay much attention to, in order to break the monopoly of OpenSea. Now it seems that the effect is remarkable. But this efficiency comes at the cost of trust to a certain extent. While the project cash out through WETH, it also creates natural obstacles for itself in the two development paths of “Greater” and “Better”.
  • X2Y2: The core idea is to try to catch up with OpenSea as quickly as possible on “Greater” and “Better” through a good incentive model. Supplemented by “More economical”, combined with the advantages of small volume, it can quickly make up for the pain points of “Faster” in the later stage.

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