Creators & users sell NFTs on LooksRare. They receive royalties from secondary sales (supply-side fees).

LooksRare is a non-custodial NFT marketplace protocol built on Ethereum and launched in 2022.

LOOKS tokenholders own and govern the protocol. They currently take a cut of the total transaction fees paid by buyers (revenue).

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LooksRare

# LooksRare Expenses Methodology

## 1. Overview

The LooksRare expenses metric measures the total USD value of LOOKS tokens distributed as rewards and incentives to users on a daily basis. This metric tracks the protocol's cost of incentivizing user engagement through its various reward programs including multi-rewards, trading rewards, and seasonal rewards. The calculation aggregates all LOOKS token distributions from the protocol's three main reward distributor contracts and converts them to USD to provide a comprehensive view of the protocol's token-based expenses.

## 2. Data sources

- **Blockchain events**: Parsed Ethereum contract events from three LooksRare v1 reward distributor contracts:
  - `Claim` events from the MultiRewardsDistributor contract
  - `RewardsClaim` events from the TradingRewardsDistributor contract  
  - `RewardsClaim` events from the SeasonRewardsDistributor contract
- **Token metadata**: LOOKS token contract information including decimal places for proper unit conversion
- **External data**: End-of-day price feeds for LOOKS token to USD conversion

## 3. Step-by-step calculation

### Component A: Token incentive extraction
- **Purpose**: Extracts all LOOKS token reward claim events from LooksRare's three reward distribution contracts
- **Logic**: Combines claim events from MultiRewardsDistributor, TradingRewardsDistributor, and SeasonRewardsDistributor contracts using union operations. Each event captures when a user claims LOOKS tokens from any reward program. The logic standardizes fields across all three contract types, extracting the claimer address, reward round, and token amount. All events are classified under the NFT marketplace business line and nfts market sector.
- **Key fields**: `block_timestamp` for timing, `claimer_address` for recipient identification, `reward_round` for tracking reward periods, `amount` for raw token quantities, and `token_address` hardcoded to the LOOKS token contract address

### Component B: USD conversion and daily aggregation  
- **Purpose**: Converts raw LOOKS token amounts to USD values and aggregates by day
- **Logic**: Groups all token incentive claims by day using timestamp truncation to daily boundaries. Applies decimal correction to convert raw token amounts to proper decimal representation based on LOOKS token metadata. Performs USD conversion using end-of-day price feeds matched to each day's timestamp. The conversion accounts for the token's decimal places to ensure accurate value calculation.
- **Key fields**: `timestamp` truncated to daily grain, `token_incentives` containing the USD-converted daily totals, along with standard dimensional fields like `chain_id` and `product_id`

### Final aggregation
- **Combining components**: The final model simply renames the `token_incentives` field to `expenses` to reflect that these token distributions represent protocol costs rather than revenue
- **Currency conversion**: USD conversion uses end-of-day price feeds matched to transaction dates, with decimal correction applied based on LOOKS token contract specifications
- **Time aggregation**: All reward claims are aggregated to daily totals using transaction timestamp truncated to day boundaries
- **Final calculation**: The final expense value equals the sum of all LOOKS token distributions for each day, converted to USD and decimal-corrected, representing the protocol's daily cost of token-based user incentives

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total project operating and incentive expenses.

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Expenses

Expenses

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