In collaboration with BullPerks, the gaming, NFT and metaverse ecosystem GamesPad is launching the new NFT marketplace feature – the NFT Lottery. It will allow users to win NFTs from different art collections by betting a specific amount of BullPerks ($BLP) or GamesPad ($GMPD) tokens.
There will be separate lotteries for $BLP and $GMPD holders, allowing participants to place their bids for NFTs in one of these tokens. To benefit token holders, BullPerks and GamesPad will be burning a portion of tokens swapped for NFTs after the lottery ends to reduce the circulating supply of the tokens and potentially increase their value.
The lottery is primarily designed to offer community members a chance to win exclusive NFTs. However, by burning a portion of the swapped $GMPD and $BLP tokens, projects also aim to stabilize the volatility of their tokens and support their value growth in the long term.
In crypto, the token burn refers to the process of taking a certain amount of tokens out of circulation to increase the value of the existing tokens. The burned tokens are sent to the so-called “eater address,” also known as a “blackhole,” which makes them inaccessible forever because it doesn’t have a private key attached to it — like a lock without a keyhole.
How Does the NFT Lottery Work?
The lottery will have a limited time and bid restrictions (minimum and maximum bet) set by an admin. All participants will have to place their bids for NFTs in either $GMPD or $BLP tokens (depending on whether the event is held for GamesPad or BullPerks communities) within these limitations before a lottery ends.
When a lottery starts, the NFT is transferred to a smart contract. To offer unparalleled transparency, the process of choosing a winner will be performed by a smart contract at the end of the lottery. The user whose bet is closest to the winning number (randomly generated number) receives the NFT.
