New NFT Project Is Using Raffles To Create Long-Term Utility

- Advertisement -


- Advertisement -

Non-fungible tokens, or NFTs, were the hottest thing in the cryptocurrency space in 2021. The NFT market generated over $23 billion in trading volume during the year – rendering $100 million a drop in the ocean from 2020. With the continuous emergence of new use cases, 2022 is turning out to be another exciting year for this growing class of crypto assets. One of such use cases is the incorporation of raffles with NFTs.

Gaming and collectibles were the biggest beneficiaries of the 2021 NFT boom. The use of NFTs in gaming introduced the possibility for gamers to become the undisputed owner of in-game items that previously would have been lost at the end of a game. In addition, artists are now able to sell their creations in digital form without having to go through traditional gatekeepers such as auction houses and galleries. The upside is that they can sell on the global market while keeping a significant portion of the profits.

- Advertisement -

However, given that NFT collectibles are highly sentimental in value (at least in the pre-Metaverse world), every successful project needs a mixture of one or three ingredients – Influencer/celebrity participation, a strong community and utilities for holders. Early projects including Cryptopunk and Bored Ape Yacht Club (BAYC) had strong celebrity involvement. For example, The Tonight Show host Jimmy Fallon brought in a BAYC for $145,000. Many popular people have gone a step further mint your own nft mint, For projects involving celebrities or influencers, community building comes naturally easily. However, other projects must seek more creative ways to build and grow their communities.

Open Head NFTs, which launched on January 12th, is one of the projects that is developing a community creatively. It is offering collectors who mint or buy their NFTs the opportunity to win ETH rewards through periodic on-chain raffles.

Open Head NFT is a collection of digital arts that represent what it means to have an unlimited mind or literally open head without the boundaries of thought.

“There are many NFTs today, and new ones are launched every day, but many of them are the same. Nowadays, there are 100, if not 1000 different apes and animals [NFTs]Open Head CEO Quim Roca said.

For Roca, bringing something unique to the market begins with offering a new range of collectibles before moving on to one with a different kind of utility.

“I think the creative art that we have is very unique; there’s nothing like the open head concept,” Roca said. “Then, I wanted to go one step [further] And not just create an art project; I wanted the open head to be something that would bring value to the holder in the long run, so you always have a real reason to hold an open head. ,

Roca and his team are hoping that their project’s raffle feature will be reason enough to buy and keep the open head artwork.

However, raffles are not a new concept in the crypto space. OlympusDAO Integrated Proven-fair and verifiable random number protocol Chainlink VRF for its no-loss lotteries. There is also a growing number of lottery-type use cases in the NFT space. However, Open Head is different in that this is the first time an art project has been looking to use Raffles to grow its community. Although competing projects such as Mystery Mint claim to be using Chainlink VRFs to conduct raffles for transparency purposes, Roca insists that none of them are completely on-chain, eliminating various single points of failure. presents.

“There are other projects that do NFT raffles, but none of them are completely on-chain; they have some off-chain operations that are required for raffles to actually work,” Roca said. . “This means that project owners can decide to stop running them [the raffles] At will, and that’s what makes us different; We are a completely on-chain raffles system.”

For Open Head, being completely on-chain means that, upon deployment of its smart contract, the logic of shielding NFTs, conducting raffles, deciding the winners, and ultimately crediting the winners’ wallets is automatically turned on. There will be chain.

The design of the open head NFT raffle is such that once all 10,000 of its digital arts have been mined, there will be an opening raffle that will see an open head holder win 100ETH. This is more than 14% of the estimated 700ETH in earnings. Creating an NFT will cost 0.07ETH.

The project also set a 60% royalty for periodic raffles – 50% for the monthly lottery and 10% for the weekly draw. The remaining 40% of the royalty generated will go to team and project development initiatives.

While the prospect of winning large ETH sums is attractive, it remains to be seen whether this will be enough to entice NFT collectors. Firstly, the Open Head project does not have impressive-backed support from Cryptopunks or BAYC. This can make it difficult for collectors to add any social or sentimental value. That said, this project could be an easy sell for people who have already played the lottery.

There is also an important section in the project’s publicly available manifesto, which states that the raffle happens. Only When all 10,000 NFTs have been mined. There’s no crystal ball to tell when the project will sell out for the raffle portion to begin. Considering the increasing competition in the space, it should be considered.

Roca, however, insists that the project will continue, even if it doesn’t sell out.

“We have a fallback system that will allow the raffle system to be launched if the project does not sell after three months. Without this, we risk losing the raffle money locked in the smart contract forever.”

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox