Turning dust into prizes: LooksRare’s NFT lottery hits the market

LooksRare is starting an NFT lottery where users can buy entries for 0.01 Ether (ETH) or less. All they need to participate is a crypto wallet and enough ether to cover the entry costs and gas fees, according to the NFT marketplace.

Zodd, the pseudonymous co-founder of LooksRare, announced the “LooksRare Raffles” in a blog post on Tuesday. They said the top prize each day this week would be a Bored Ape Yacht Club NFT (BAYC).

Although only one BAYC NFT is available each day, the platform said the prize pool also includes other “blue chip” NFTs. Other prizes include Azukis and allocations of the platform’s native coin, LOOKS.

LooksRare said it will run this lottery for seven days, with one draw each day, and collect a “small fee” on each round. If the reception is good, it could become a permanent fixture on the NFT marketplace site, LooksRare tells Blockworks.

During the first round on Wednesday, there will be one BAYC NFT, five Azuki NFTs and 100 bundles containing 1000 LOOKS tokens, each available for participants to acquire.

The raffle program is built on a foundation of smart contracts, which LooksRare said are “100% transparent” and “visibly fair.”

“We use Chainlink VRF (Verifiable Random Function), which is a provably fair and verifiable random number generator…For each request, Chainlink VRF generates one or more random values ​​and cryptographic proof of how these values ​​were determined. The proof is published and verified on the chain before any consuming application can use it,” LooksRare said in a statement provided 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 developers of smart contracts.”

The prize pool has a fixed number of entries users can buy per sale, which LooksRare says keeps the raffle balanced. But there is also a minimum number of entries that must be picked up for the raffle to continue.

“If there is too little interest in a particular round, it will not go ahead. So if the number of purchased listings is too low, the contract will enable users to get them refunded,” Zodd wrote in the blog post.

The LooksRare blog post also suggested that buying these cheap lottery tickets is a good way to use 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, dust usually has minimal monetary value.

Get today’s best crypto news and insights delivered to your email every night. Subscribe to Blockworks’ free newsletter now.

Want alpha sent straight to your inbox? Get degen trading ideas, management updates, token performance, unmissable tweets and more from Blockworks Research’s Daily Debrief.

Can’t you wait? Get our news in the fastest way. Join us on Telegram and follow us on Google News.