Inspired by a Chinese tradition, Loopring's Red Packets offer an exciting way to present tokens as gifts to your loved ones, friends, or even orchestrate a complimentary distribution for your community.
Loopring, an L2 solution, is a protocol designed to scale Ethereum and mitigate transaction fees. Red Packets can be dispatched through the project's native wallet or a web app with a built-in exchange. However, due to Loopring's unique attributes, a modest activation fee (approximately $3) is required. Following this one-off payment, all restrictions are lifted.
So, what are Red Packets?
In essence, it's a creative way of gifting supported tokens to people, certain to delight with its out-of-the-box approach. There are two variations of Red Packets: private ones, accessible via a dedicated link, and public ones, open to any Loopring user. The sender can customize the amount, the number of recipients, a personal message, time, and even set a specific distribution term:
1. Relay: Each individual who opens the packet receives a random allocation of tokens from the total. If they share the QR code with another person, they will receive half of the subsequent gift.
2. Lucky: The concept is the same as Relay, but without the referral element.
3. Normal: Each packet contains an identical proportion of the total amount.
One hitch is that the transfer of cryptocurrency effectively happens centrally, via specialized sub-accounts. Until the users move their funds to their personal account, they are held by a third party. However, if not claimed within a day, the tokens are returned to the sender.
Can NFTs Be Given as Gifts?
In April 2023, the team introduced a new feature to the Red Packets system, enabling users to give Non-Fungible Tokens (NFTs - ERC-1155) as gifts. The procedure closely mirrors the process for sending traditional cryptocurrency, with added features including the ability to set specific time frames. In addition, the relay distribution option has been substituted for a random one. This change allows the creation of a single distribution containing both empty and filled envelopes.
This feature is particularly well-suited for promotional giveaways, airdrops, or various social media initiatives. Winners have a three-day window to transfer their NFT to their private wallet. The Loopring team has expressed great satisfaction with the creative ways users are utilizing this feature, and they plan to continue enhancing its capabilities.
