RAFL is an online raffle platform built using Ethereum smart contracts. Read our review today to find out how it works.
What is RAFL?
RAFL, found online at RAFL.network, is an Ethereum smart contract-based online raffle system. The system functions like a lottery: multiple people enter the lottery with the hope of winning a prize. You buy tickets to enter the lottery, and all transactions are recorded on the blockchain.
The ICO for RAFL begins on November 15, 2017. You can purchase RFL tokens to participate in the RAFL ecosystem: 100% of RAFL’s profits will be paid in ETH to token holders. Token holders will also make decisions on proposals. To be clear, the token is not for payments within the network: it’s to participate in profit sharing.
How Does RAFL Work?
RAFL’s platform consists of a provably fair Ethereum-based decentralized app (DApp) that allows users to either:
- Participate in a raffle (have the chance of winning an item for a fraction of the cost)
- Host a raffle (earn the maximum amount of capital for an item they wish to sell)
Each raffle is a gambling competition where people obtain numbered tickets, and each ticket has the chance of winning a prize. Once all tickets have been purchased, one ticket is randomly drawn. If the participant’s ticket is selected, that participant wins a prize. This system is identical to “real world” raffles.
With RAFL, the raffle works in a slightly different, more blockchain-based way. All raffle ticket purchases are recorded on the blockchain, and the tickets are split evenly based on the value of the item being sold.
Let’s say someone wants to sell a $50,000 car. They post the item on RAFL, and the platform sells 500 tickets at $100 apiece. The raffle winner gets a car with a value of $50,000 in exchange for a $100 ticket. The platform keeps 1% ($500) while the seller gets 99% ($49,500).
The platform can be used to sell virtually any type of item, although the RAFL whitepaper mentions prohibited items. It would make sense, for example, that weapons and contraband would not be available for raffles through the platform.
Meanwhile, funds in the platform will not be released until confirmation of delivery, or automatically within 10 days of the specified delivery date of the item.
RAFL Features and Benefits
RAFL is emphasizing all of the following features and benefits:
Risk Free: Users have full control of funds until entering it into a smart contract. All ETH raised by the raffle will be governed by smart contracts. If the money is misused, or if there’s a user dispute, the RAFL team has the power to intervene and trigger the refund process.
Provably Fair: RAFL uses an open source blockchain-based random number generator to create a provably fair random raffle draw in a trustless environment. That code is all open source and verified, so anyone can ensure that the raffle is provably fair.
No Personal Data: RAFL will not require any personal data for participating in or hosting raffles. Instead, the platform will be linked to a user’s Ethereum wallet. RAFL will provide a secure messaging system between the vendor and the winner. All delivery details can be exchanged via the off-chain P2P messaging system.
New Concept: RAFL claims to be a totally new concept. The company is seeking to create the first “raffle market” – something that hasn’t really been seen before on the internet. We’ve had platforms like eBay, where users bid for an item. But we haven’t had a raffle system. The creators of RAFL believe blockchain gives us an opportunity to create an honest and transparent raffle marketplace like never before.
Secure: Raffles are recorded on the blockchain for maximum security. This provides immunity against all manipulation of raffle draws.
Who’s Behind RAFL?
RAFL is led by Founder and CEO Shaun Ikeda, an experienced full stack developer who worked at Amazon as an SDET dev engineer from 2014 to 2016. Other key members of the team include Charlie Godwin (Co-Founder) and Zaq Qureshi (Sales & Marketing).
The development team is based in the UK, with two of the members coming from Cambridge.
How Does the RFL Token Work?
RAFL is selling the RFL token. However, most raffles on the platform will be priced in fiat currency. RAFL will hedge received Ethereum by exchanging it with a stable coin. They specifically mention the Dai coin, which will introduce a stable commercial environment within the Ethereum ecosystem. Once that coin is released, the company plans to use it to run an efficient, balanced market.
RFL tokens, meanwhile, are used to collect fees on the platform. RAFL will collect a 1% charge on all ETH raised in cash raffles. 100% of RAFL’s profits are distributed to token holders, according to the number of tokens they hold. Note that the whitepaper says profit – not revenue. So a portion of the 1% fee will cover the platform’s expenses and presumably, the team’s expenses and salaries.
The RFL Token Sale
The RFL token is an Ethereum ERC20 token. There’s a maximum total supply of 100,000,000 RFL tokens, with a soft cap of 40 million RFL and a hard cap of 480 million RFL. During the crowdsale, 1 ETH = 2,000 RFL.
The crowdsale begins on November 15 and will last for 21 days until December 6, 2017.
In terms of a timeline, the company is expecting to release the alpha and source code for RAFL in Q1 2018, with a public beta in Q2 2018.
RAFL is a raffle platform built on the Ethereum blockchain. The platform aims to create a unique marketplace where users can pay to join various raffles. If you want a chance to win a $100 watch, for example, then you could buy a $1 raffle ticket. 100 raffle tickets are sold, and the lucky winner gets a $100 watch for $1. The platform can be used to sell anything from watches to vehicles. The seller gets the maximum possible price for their item, while the winner gets a great deal. The platform, meanwhile, charges a 1% fee.
The RFL token sale begins on November 14. RFL token holders will receive 100% of profits collected by the platform. RFL tokens will not be used to enter RAFL raffles. Instead, most raffles are performed using fiat currencies.
To learn more about the platform and how it works, visit online today at RAFL.network.