Valueable NFT lottery to incentivize trading

Community Chatroom (DISCUSSION)
1

The biggest challange bancor is currently facing is to get attract more trading volume. I have been thinking about ways to stimulate trading on bancor without inflating the BNT supply too much, and came up with an interesting idea.

What if you’d get intered into a valueable NFT lottery, every time you make a trade on bancor? It would certainly give people incentive to trade on bancor over let’s say uniswap, as they get the chance to hit that rare, valueable NFT (cryptopunk or similar?)

Similar to what contributed to binance success in 2017. They gave away a bmw I8 / tesla and so on to some lucky traders. Why would you trade on bittrex/poloniex if you could win a supercar on binance? Crypto.com took this same approach with multiple giveways, and these ways of marketing seem to work. Lotteries in general are successful because it gives people the possibility to win something that could be lifechanging. In general it would be a relatively cheap way for people to get attracted to the bancor protocol, compared to some other possible incentives. And once they are used to how bancor works, they might stick around.

It’d also be a clever way of marketing, which could be used to get peoples attention on social media. Everyone would be talking about that AMM where you can win a rare and valueable cryptopunk (or similar) for simply making a single trade. I would definitely go for the hyped NFT’s to cause this ripple effect, which would probably be a cryptopunk currently.

It could be organised and funded in different ways. Even by minting ~$10-50k usd worth of bnt to fund the lottery, which would be like a small droppled in the ocean of LM rewards. It would probably also rake in far more trading fees for the protocol compared to the amount of bnt that would need to get minted. The lottery could be hosted on a weekly or monthly base. (Preferably weekly to start things off)

I’d suggest to grant more tickets to bigger transactions, however to focus on the relatively small transactions as that’s where bancor is currently lacking. in a way similar to:
-1 ticket for 0-1k transaction -2 tickets for 1k-5k transaction
-3 tickets for 5k-10k transaction -4 tickets for 10k-25k transaction
-5 tickets for $ 25k+ transaction

New projects could also promote the trading of their token on bancor, by sponsoring the lottery, resulting in a ticket multiplier for trading their specific token.

Showing the amount of tickets accumulated could be done off chain, with a snapshot, to avoid any gas cost.

Let me know your thoughts on this fairly cheap way of marketing & incentivising trading on bancor.

7 Likes
2

This is a really good idea.

There has been a lot of discussion about making new NFTs, but the idea to buy an existing NFT of special meaning is highly original. It’s like the crypto version of giving away a car or something.

Nice work, Bavi.

5 Likes
3

Thanks Mark, I’ve received a lot of positive feedback on this idea. Perhaps we can work together on creating a governance proposal for this.

2 Likes
4

perhaps we could also raffle something from the BNTee Shop. they are quite valuable atm.

4 Likes
5

It may not need a vote - in fact, it is probably better without one.

I think we should keep the conversation going in here for a while.

What NFT took your fancy? Can you describe exactly how the tickets system will work (low-level)?

1 Like
6

Regarding which NFT’s, I’d suggest 3 categories:

-NFT’s that are hyped/and or highly collectible and sought after. At this moment, the cryptopunks are the clear winners in this category

-NFT’s backed by something, like the ones on enjin which you can actually melt, to get enjin tokens, hence giving them instant liquidity and a bottom price.

-Tokens on a bonding curve that offer instant liquidity, like the tokens on the BNTEE website.

I think the important thing to note here is that the NFT needs to be highly liquid and is regarded by the public to have a certain value. The vortex nft is great, but is missing these 2 aspects.

I would suggest to host both a weekly “lottery” with a decent prize, and a monthly one with a grand prize that makes everyone talk about it. Something that would be lifechanging for a lot of people.

Regarding how to distribute the tickets, I made a small overview in the initial post already:

So basically every trade wallet X makes on bancor, gives that wallet 1 or more tickets, depending on the total value transacted in that trade.

At the the lottery cut off time, a calculation should be made for each wallet that made trades on bancor, to determine the amount (and serial numbers) of tickets accumulated. One of the tickets serial numbers will be picked at random according to a random number generator. Example:
If wallet X made the first trade of the week with a total value transacted of $3k, that will get him ticket numbers 1 & 2
Wallet Y made the second trade of the week with a total value transacted of $11k, that will get him ticket numbers 3 → 6

Lets say the week ends and the rng hits ticket number 5 → wallet Y will win the grand prize.

Something in these lines, but could ofcourse be modified depending on the complexity & possibilities.

Let me know your thoughts.

3 Likes
7

I wonder if this can lead to a possible collaboration with the Axie Infinity folks? I could see us potentially minting axies that we would then use for the purpose of the raffle. If we do have communication channels with them already then we can potentially discuss making these axies unique in some way such that they are Bancor themed somehow. I am sure there are other possible NFTs that can be used for this raffle but this one came to mind since it would help bring our communities closer.

4 Likes
8

Super interested in this NFT discussion ,
NFT can be almost anything we want them to represent .

One thing NFT are good at, is bragging rights. Proof of attending a particular event , or participating and contributing to something of importance. My little team working on something like a NFT rewards : we survived that " X Token pool" genesis. :_ )

Our NFTs maybe coming your way , classy and respectfully

2 Likes
9

Whoa can we make some bancor ones that would be awesome!

1 Like
10

If the tickets are actually issued ERC20 tokens, they could be bought and sold.

3 Likes
11

That’s an excellent idea! This drastically expands the range of NFTs we can add by effectively adding an opt out; those who don’t want to deal with the possibility of getting an illiquid NFT simply sell their tickets.

2 Likes
12

I’m interested to know if anyone else thinks we can leverage the Rarible or OpenSea projects to implement this idea; I’d really like to.

1 Like
13

For those that might not have seen, Bancor launched a trader rewards program that uses NFT:

This idea might have been inspired by this post.

4 Likes