It’s grown beyond raffles and auctions? *GASP*
It was only a few months ago that utility tokens and raffles truly took the Algorand ecosystem by storm. It seemed for a moment every NFT project on Algorand not only had their own token, but their own raffle platform.
Then Raffle Bees came along…
…and everything changed.
Raffle Bees is a p2p — peer-to-peer raffle, auction, and now utility token marketplace that aims to be a central hub for digital collectible (nft) rewards.
This article will give an overview of Utility Tokens on Algorand, cover some of the oldest tokens currently available on Raffle Bees, and give a general rundown of the Raffle Bees platform.
Correction: A previous version of this article suggested that tokens listed in the new Token Marketplace were non-refundable. Algohaven has clarified that aside from platform fees, all tokens ARE refundable upon delisting. Some wallets have a bug that will not clearly show the refunded transaction.
Disclaimer: This article is for informational purposes only. We do not take any responsibility for any action or inaction resulting from the information in this article. Use of any website, link, application, etc. is at a user’s own risk.
Quick Links
- Utility Token Overview — Freeze and Clawback; Use Cases
- Oldest Utility Tokens on Raffle Bees — Coupons, Shrimp, Chips, and Oats
- Buzzy Bees
- Raffle Bees Overview — Raffles, Auctions, and Token Market
- Recap
Utility Token Overview
For the purposes of this article, a Utility Token is defined as a token that:
A) does not have a direct monetary value;
B) is only tradeable for other non LP’d tokens or NFTs
Utility Tokens are similar to a loyalty rewards system. Creators of digital collectibles (nfts) can reward their most loyal holders by sending them branded tokens. You can think of these tokens as “points” in traditional reward systems.
Utility tokens are often redeemed for NFT art upgrades, prizes, discounted merchandise or other perks while *hopefully staying on the right side of regulations.
*I am not a lawyer and do not have the authority to definitively say one way or another.
Freeze and Clawback
To further show that projects are trying to act in good faith, Utility Tokens on Algorand often have freeze and clawback enabled.
When freeze is turned on, creators (or the designated asset manager) can prevent an asset from being moved.
Clawback on the other hand, allows creators to move tokens from one wallet to another.
If a user attempts to create an LP — Liquidity Pool on a decentralized exchange using a Utility Token like $SHRIMP, the asset manager can clawback — move or take possession of the tokens to prevent them from being traded for currency.
Aside from navigating regulations, there are also some FUN aspects to having clawback enabled.
Use Cases
Thurstober, the creator of STUPIDHORSE/tinyhorse run horse racing in her Discord. Winners receive $OATS that can be used to purchase in-game items without leaving the app. Rather than requiring players to sign transactions every time they want a Cooldown Cola or other item, she uses a script that can clawback — move $OATS on the player’s behalf.
This creates a seamless player experience.
In Thurstober’s perfect world, players would use blockchain without knowing they’re using blockchain.
Yes Thurs, I am putting words in your mouth.
Stitch, creator of Yieldlings, M.N.G.O, & Mostly Frens, is one of many creators that use clawback for their Discord tip bots.
Tip bots are just as they sound; they are bots that allow users to tip other users.
Someone made a good meme?
Tip some $SHRIMP.
Someone found a good article?
Tip some $SHRIMP.
Someone just short of their Mostly Fren upgrade?
You best believe you should tip some $SHRIMP.
The name of Stitch’s Discord Tip Bot? Shrimp Tipura.
Oldest Utility Tokens on Rafflebees
There are 52 Utility Tokens supported.
For sake of this article, I’m only referencing the only (4) created in 2021.
NFT Grocery Store Game
$COUP: ID 281003266
Related projects: Lemon Legion
Idle Discord Game
Shrimpies Shrimp Rewards
$SHRIMP: ID 360019122
Related Projects: Yieldlings, Ling Lings, M.N.G.O, Mostly Frens.
Used to upgrade Mostly Frens
Also used in raffles, auctions, and The Popcorn Lounge
Apeshi🍌 Banana Chip
$NANACHIP: ID 418706707
Related Projects: bananaMINT, bananaKICK, bananaPRINT, bananaBIRD
Used for bananaMINT Evolutions
Also used in raffles and auctions.
Oats
$OATS: ID 493895498
Related Projects: STUPIDHORSE, tinyhorse, 2tinyhorse, STUPIDPONY
Used for in-game items, purchasing OATPASSES (discounted 2tinyhorse), raffles, auctions, and custom NFTs
Protip: The lower the Asset ID number on Algorand, the older it is.
Buzzy Bees
Buzzy Bees just celebrated their 1-year anniversary on Algorand.
According to their Gitbook, they reportedly donated 15% of mint proceeds to charities including The Bee Conservancy and Aide for Ukraine.
Recently, they released Hive Keepers, the companion series to Buzzy Bees.
Both collections are used to reduce commission fees on the Raffle Bees platform.
Raffle Bees Overview
Rafflebees is a p2p — peer-to-peer raffle, auction, and now token marketplace.
Powered by Buzzy Bees in collaboration with AlgoHaven, the platform has become the primary location to redeem Utility Tokens — loyalty rewards.
Raffle Bees “allows any Algorand user to create their own Raffle or Auction for any of the approved ASAs (Algorand Standard Asset) listed on the site.” — Raffle Bees Gitbook
Raffle ticket sales and auction bids are held in a smart contract — blockchain application. Smart contracts are a fancy name for small programs that can (among other things) create transactions on a user’s behalf.
On Raffle Bees, digital collectibles (nft) and utility tokens are held in a smart contract until:
A) all tickets are purchased and a winner is selected; or
B) a raffle or auction reaches its end
Note: There is a lot more to smart contracts, their features, and drawbacks that are outside of the scope of this article.
In this section:
Raffles
Were the first Raffle Bees product to go live in September.
Key Features:
- Open Platform: Any Algorand user can create a listing for any supported token.
- Current user options: Token Name, Asset ID (of item to raffle), Ticket Price, Ticket Amount, and Raffle Duration.
- Reduced fees for Buzzy Bee holders: Along with a 50% commission fee reduction, Buzzy Bee holders automatically have their listings featured on the main page.
- NFT returned if there are not any ticket sales/bids — This is less of a ‘feature’ and more of a peace of mind kind of thing.
Here’s what a sample listing could look like:
And here’s what the featured page looks like. Only listings by Buzzy Bee holders will show on this page.
The winner of the raffle receives the digital collectible (nft) while the raffle host receives the utility tokens from all participants.
It’s a way to trade and extend the use of loyalty rewards across the ecosystem.
Reminder: Buzzy Bees are a digital collectible (nft). When creating a listing on the Raffle Bees website, the site looks for Buzzy Bee nfts in a user’s wallet. If it sees one or more? Great! The user receives a discount on the service. If no Buzzy Bee, there is no discount.
Auctions
Were the second product to launch on Raffle Bees.
Key Features:
- Open Platform: Any Algorand user can create a listing for any supported token.
- Current user options: Token Name, Asset ID (of item to raffle), Reserve Price (Minimum # of Utility Tokens to win the auction), and Auction Duration.
- Reduced fees for Buzzy Bee holders: Along with a 50% commission fee reduction, Buzzy Bee holders automatically have their listings featured on the main page.
- NFT returned if there are not any ticket sales/bids — Again, this is less of a ‘feature’ and more of a peace of mind kind of thing.
Heres what a sample listing could look like:
The winner of the auction receives the digital collectible (nft) while the raffle host receives the utility tokens.
Token Market *NEW*
Launched 11.29.2022
The newest feature of the Buzzy Bees/Raffle Bees ecosystem. Users can now create p2p marketplace listings to exchange one type of Utility Token for another.
Key Features:
- Semi-Open Platform: Any Buzzy Bee/Hive holder can create a listing for any supported token.
- Current user options: Token Name, Offered Token, Exchange Rate
- Reduced fees for Buzzy Bee holders: 50% commission fee reduction. (does not apply to the 5 $HNY listing fee)
- Correction: A previous version of this article suggested that tokens listed in the new Token Marketplace were non-refundable. Algohaven has clarified that aside from platform fees, all tokens ARE refundable upon delisting. Some wallets have a bug that will not clearly show the refunded transaction.
In the example below created a listing to exchange 50 Arcadian Tales Tokens for 25 $GRUB tokens.
After the listing is created, anyone can fulfill the token trade up the remaining amount at the ratio I created.
In this example someone could send me 5 $GRUB in exchange for 10 Arcadian Tokens I deposited in the Raffle Bees account.
Okay. So that’s the listing side. How about the buy side?
In this example, I listed 10 $SHRIMP under “Give” and the “Get” field auto-populated at the ratio the lister set. In this case a 7:1 ratio would give me 70 $GRUB.
Note: When swapping one token for another, users will get a warning on MyAlgo suggesting the Transaction Groups shown might be incomplete.
The transaction page currently only shows the outgoing tokens, and does not confirm the other half of the trade.
This wasn’t a huge deal to me, but without this showing on the MyAlgo interface before signing, there was an extra level of trust involved.
Recap
Buzzy Bees have been growing their Raffle Bees platform at a pretty impressive clip, adding new features nearly every month since its September debut.
The new Token Market is poised to help bring communities across various NFT ecosystems together, adding greater accessibility between projects.
What’s next? I suppose we’ll have to wait and see.
In the meantime, I think I need more $NANACHIPS for my bananaKICK Evolution.
Correction: A previous version of this article suggested that tokens listed in the new Token Marketplace were non-refundable. Algohaven has clarified that aside from platform fees, all tokens ARE refundable upon delisting. Some wallets have a bug that will not clearly show the refunded transaction.
Buzzy Bees on Twitter: @buzzybeenft
Raffle Bees on Twitter: @RaffleBeesALGO
Andrew on Medium: Andrew W
Andrew on Twitter: @andrewwindmills
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Disclaimers and Disclosures
This article is for informational purposes only.
No compensation was taken in exchange for writing this post, including but not limited to allow list spots, tokens, currency in any form, etc.
I was not asked to write this article.
As of this writing I had a few assets referenced in this article.
My opinions are my own.
NFTs, digital collectibles, and digital currencies are all extremely volatile assets.
There is a chance assets will lose some or all of their monetary value.
Nothing in this article constitutes legal, tax, or investment advice. Nothing in this article is a replacement for one’s own proper due diligence.
We do not take any responsibility for any action or inaction resulting from the information in this article.
Use of any website, link, application, etc. is at a user’s own risk.
