Less than two weeks after their successful presale on DXSale-- raising 500 BNB, Rafflection plans to launch a Raffleboard, a tweet on May 10 reveals.
Users would easily interact with the platform from a clean and intuitive user interface, a positive move, especially for onboarding purposes.
What is Rafflection?
Rafflection introduces a novel reward mechanism of awarding loyal RAFF holders, effectively making HODLing a long-term solution.
Every four hours, the protocol will automatically run a raffle contract and randomly award winners.
Depending on the number of tokens in their address, the system will award winners, helping them increase yields through HODLing.
By default, an account with less than one percent of the Raffle's balance will receive 50 percent of the RAFF tokens in their account. This boost goes a long way in improving their annual yields, increasing their financial bases.
However, if the RAFF holder has more than one percent of the Raffle's balance, they will automatically receive 100 million RAFF tokens.
A Raffle-based Rewarding System in DeFi
A distinguishing aspect about Rafflection is that RAFF holders, once selected as winners, don't have to claim tokens, a norm in other DeFi platforms.
All winnings will be credited directly to the account without threats of time-locks or burns.
Also, the Rafflection system continuously rewards other RAFF holders. For every transaction posted within Rafflection's rails, an eight percent fee is charged. Half of the collected fees go to RAFF holders—excluding winners of that Raffle round. A quarter is for improving RAFF's liquidity.
However, the amount channeled to RAFF's liquidity pools in PancakeSwap will be determined by transaction volumes.
The more actively traded a pool is, the more funds channeled.
From this, half will be converted to BNB. Together with the other half, it is channeled to RAFF Pools to facilitate easy token swapping.
The remainder is re-injected to the Raffle contract.
Over $9k in RAFF Distributed to Winners
As of May 12, Rafflection has distributed over $9k worth of RAFF to winners.
This random selection is despite the absence of Verifiable Random Function capability in the Binance Smart Chain (BSC)—a platform that Rafflection operates from due to its inherently low transaction fees and higher transaction processing power.
To bypass this challenge, the Rafflection team deployed a random algorithm that comprises two parts.
One part of the algorithm generates a seal—a hashed result consisting of a user-generated random number combined with their address.
The other part verifies the seal and calculates the random number as a hash.
Through this obfuscation technique, contract owners can't figure out the random number of a future block.
At the same time, miners wouldn't instantly know the random number of the contract owner's address. This arrangement makes it hard for users to manipulate the raffle system.
For fairness--especially against whales--the Rafflection system is designed so that even if whales split their RAFF tokens to different addresses, their benefits will be disincentivizing.
Rafflection counters this by imposing a minimum threshold that needs to be met for users to participate in the Raffle.
It is a security assurance, coming when RAFF tokens trade only on PancakeSwap—an Automated Market Maker (AMM).
According to RugScreen, rug pulls cost DeFi investors billions every year.