LooksRare is the clearest case study in incentive design gone wrong. It rewarded users with tokens proportional to trading volume, so users traded with themselves at enormous notional prices to maximise rewards. Reported volume exceeded OpenSea's within days and meant nothing.
Why it matters beyond LooksRare
This is why NFT volume statistics require scepticism generally. Wash trading is cheap when the marketplace fee is low and the rewards are high, and any platform running volume-based incentives will produce inflated numbers. CryptoSlam's wash-trade filtering exists specifically because of episodes like this one.
Where it stands
The platform still functions with a very low marketplace fee of around 0.5% and its contracts have not been exploited. Actual liquidity is minimal — the users left when the rewards did.
Royalties
Optional, following the wider market shift.
Who should use it
Few people. Its fee is low and its market is empty, so a listing here reaches almost nobody.