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

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, making it of the $ 100 million of 2020 a drop in the ocean. With the continued emergence of new use cases, 2022 is shaping up to be another exciting year for this growing class of crypto assets. One of those use cases is incorporating raffles with NFT.

Games and collectibles were the biggest benefactors of the NFT boom in 2021. The use of NFT in games has allowed players to become the clear owners of in-game items, which would previously have been lost. at the end of a game. In addition, artists can now sell their creations digitally without having to go through traditional gatekeepers such as auction houses and galleries. The advantage is that they can sell in a global market while still retaining a significantly larger share of the profits.

However, since NFT collectibles have very sentimental value (at least in the pre-metaverse world), every successful project requires one or a mix of three ingredients – an influencer / celebrity involvement, a community strong and utilities for holders. The first projects, notably the CryptoPunk and the Bored Ape Yacht Club (BAYC), were heavily involved by celebrities. For example, Jimmy Fallon, host of The Tonight Show brought in a BAYC for $ 145,000. Several popular people have gone further by creating their own NFTs. For projects with a strong celebrity or influencer involvement, community building is inherently easy. Other projects, however, must seek more creative ways to build and develop their communities.

Open Head NFT, which will launch on January 12, is one of the projects that creatively builds community. It offers collectors who strike or buy its NFTs the chance to win ETH prizes via periodic on-chain raffles.

Open Head NFTs are a collection of digital arts that depict what it means to have an unlimited mind or a literal open head with no limits of thoughts.

“There are a lot of NFTs out there today and new ones are launched every day, but a lot of them are more or less the same. Nowadays there are 100 or even thousands of different monkeys and animals [NFTs]”said Quim Roca, General Manager of Open Head.

For Roca, bringing something unique to the market begins with offering a new class of collectibles before following it with another kind of utility.

“I think the creative art that we have is very unique; there is nothing like the Open Head concept, ”Roca added. “Then I wanted to take a step [further] and not just make an artistic project; I wanted Open Head to be something that brings value to a long term owner, so that you always have a real reason to keep an Open Head in your possession.

Roca and his team are hoping that their project’s raffle feature will be reason enough to want to buy and keep an Open Head piece of art.

However, raffles are not a new concept in the crypto space. OlympusDAO has integrated the proven and verifiable Chainlink VRF random number protocol for its lossless lottery. The NFT space is also experiencing a growing number of lottery-type use cases. However, Open Head differs in that it is primarily an art project that wants to use raffles to develop its community. While competing projects such as Mystery Mint claim to use Chainlink VRF to run raffles for transparency purposes, Roca insists that none of them are fully on-chain, introducing various unique points of failure. .

“There are other projects that have NFT raffles, but none of them are fully online; they have off-chain operations that are necessary for the raffle itself to actually work, ”said Roca. “This means that the owners of the project can decide to stop managing them. [the raffles] at will, and that’s what makes us different; we are a fully chain raffle system.

For Open Head, being fully on-chain means that, when deploying its smart contract, the logic for hitting NFTs, conducting raffles, deciding winners, and ultimately crediting winners’ wallets will automatically happen on chain.

The design of the NFT Open Head Raffle is such that once all of its 10,000 digital arts have been minted, there will be an inaugural raffle which will see an Open Head holder win 100ETH. That’s just over 14% of the 700ETH expected from the product. Minting an NFT will cost 0.07 ETH.

The project also allocated 60% of the royalties generated to periodic raffles – 50% for monthly lotteries and 10% for weekly draws. The remaining 40% of the royalties generated will go to team and project growth initiatives.

While the potential to earn large sums of ETH is attractive, it remains to be seen whether that would be enough to attract NFT collectors. First, the Open Head project does not have the support of influencers from CryptoPunks or BAYC. This can make it difficult for collectors to attach social or sentimental value. That said, the project may be easier to sell to people who already play lotteries.

There is also an important clause in the publicly available project manifesto, which states that the raffle takes place alone when all 10,000 NFTs have been hit. There is no crystal ball to tell if or when the project will sell out for the raffle game to begin. This is something to consider given the increasing competition in the space.

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

“We have a back-up system that would allow the raffle system to start if the project doesn’t sell out after three months. Without it, we risk losing the raffle money stuck in the smart contract forever. “

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