NFT
LooksRare is launching an NFT lottery where users can purchase entries for 0.01 ether (ETH) or less. All they need to participate is a crypto wallet and enough ether to cover entry fees and gas costs, according to the NFT marketplace.
Zodd, the pseudonymous co-founder of LooksRare, announced “LooksRare Raffles” in a Tuesday blog post. They said the grand prize would be a Bored Ape Yacht Club NFT (BAYC) every day this week.
While there is only one BAYC NFT up for grabs each day, the platform said the prize pool also includes other “blue chip” NFTs. Other prizes include Azukis and allocations from the platform’s own currency, LOOKS.
LooksRare said it will run this raffle program for seven days, with one raffle round per day, collecting a “small fee” for each round. If reception is good, it could become a fixture on the NFT marketplace site, LooksRare told Blockworks.
During the first round on Wednesday, there will be one BAYC NFT, five Azuki NFTs, and 100 bundles of 1,000 LOOKS tokens, each available for participants to acquire.
The lottery program is built on a foundation of smart contracts, which LooksRare said are “100% transparent” and “provably fair.”
“We use Chainlink VRF (Verifiable Random Function), a provably fair and verifiable random number generator… For each request, Chainlink VRF generates one or more random values and cryptographic evidence of how those values were determined. The proof is published on-chain and verified before consuming applications can use it,” LooksRare said in a statement provided exclusively to Blockworks.
The statement continued: “This process ensures that the results cannot be tampered with or manipulated by any single entity, including oracle operators, miners, users or smart contract developers.”
The prize pool has a fixed number of entries that users can purchase per sale, which LooksRare says keeps the lottery balanced. But there is also a minimum number of entries that must be collected for the lottery to go ahead.
“If there is too little interest in a certain round, it will not take place. So if the number of entries purchased is too low, the contract allows users to get refunded,” Zodd wrote in the blog post.
The LooksRare blog post also suggested that buying these cheap lottery entries is a good way to spend the crypto dust in your wallet. Dust refers to small amounts of cryptocurrency left over from transactions processed on the blockchain. Similar to receiving pennies as change in a cash transaction, cloth usually has a minimum monetary value.