The market is similar to lunars store partner section. The differemce with the market and partners is that the market is public meaning players can create their own designs, and all creators must have their designs checked by mods before it is sold at the market.
The market: players who made that item will get a SMALL % cut(so Partners still have more benefits) that can ONLY be used im the lunar store. Also people would haveto design it themself, mods only check for copying/etc
Wouldnt this be free cape?: no, you still haveto buy for the cape with money, or with the credits
So the items are all cosmetics(other then emotes), why?: how would devs add that
Open to questions, but i think its a good idea