From next January 12, a company will offer the opportunity to the owners of NFTs to raffle them periodically to win prizes in Ethereum
The NFT market generated more than US $ 23 billion in trading volume during 2021, a figure that turned the $ 100 million of 2020 into a drop in the ocean.
In this context, 2022 is shaping up to be another exciting year for these crypto assets. And one of those use cases is onboarding raffles with NFT.
A new modality
Games and collectibles were the biggest benefactors of the NFT boom of 2021. AFurthermore, artists can now sell their creations digitally to a global market while maintaining a significantly larger share of the profits.
However, since NFT collectibles have enormous sentimental value (at least in the pre-metaverse world), every successful project needs the involvement of influencers/celebrities, a strong community and profits for the owners.
Openhead seeks to explore the potential of NFTs raffles
Early projects, including CryptoPunk and Bored Ape Yacht Club (BAYC), had heavy celebrity involvement. For example, Jimmy Fallon, host of The Tonight Show, bought a BAYC valued at $ 145,000, which led many famous people to coin their own NFT.
Other projects should seek more creative ways to build and grow their communities such as Open Head NFT, which launches on January 12. It will offer collectors who mint or purchase their NFTs the opportunity to win ETH prizes through periodic chain raffles.
“There are many NFTs on the market today, and new ones are released every day, but many of them are more of the same. Today, there are 100, if not thousands, of different apes and NFT animals,” he noted. Quim Roca, CEO of Open Head.
For Roca, bringing something unique to market starts with offering a new class of collectibles before moving on to a different kind of utility.
“I think that he creative art that we have is very unique; there is nothing like the concept Open Head“added Roca.
“So, I wanted to go a step further and not just do an art project. I wanted Open Head to be something that value contribution to a long-term possessor, so you always have a real reason to keep an Open Head in your possession, “he said.
“There are other projects that do NFT giveaways, but none of them are completely on-chain; they have some off-chain operations that are required for the giveaway itself to work,” Roca said.
“This means that the project owners can decide to stop executing the draws at will, and that is what makes us different; we are a totally chain raffle system, “he said.
For Open Head, being fully chained means that, after the deployment of your smart contract, the logic for minting the NFTs, running the raffles, deciding the winners, and ultimately crediting the winners’ wallets will automatically occur on the chain.
How does the raffle work?
The design of the Open Head NFT raffle is such that once all your 10,000 thousand works of digital art, there will be a inaugural raffle who will see a Open Head holder earn 100 ETH. That’s a little over 14% of the anticipated 700 ETH in revenue. Mining an NFT will cost 0.07 ETH.
The project also allocated 60% of the royalties generated to periodic raffles:
- 50% for monthly lotteries
- 10% for weekly draws.
- The remaining 40% of the royalties generated will go to the team and projects of growth initiatives.
While the potential to earn large sums of ETH is attractive, it may not be enough to attract NFT collectors. First, the Open Head project is not endorsed by CryptoPunks or BAYC influencers.
There is also an important clause in the project’s public manifest, which states that the draw takes place only when all 10,000 NFTs have been minted.
There is no way to know if the project will sell out or when it will run out for the raffle portion to begin. That’s an important thing to keep in mind given the increasing competition in the space.
Roca, however, insisted that the project will continue to work even if it is not exhausted. “We have a reservation system that would allow the raffle system to start if the project is not exhausted after three months,” he stressed.
“Without this, we run the risk of losing the raffle money locked in the smart contract forever,” the executive completed, in an article published by Forbes.
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Fever for NFTs: new platform allows you to raffle them and win prizes in Ethereum