Set-up a Raffle

How to set-up your Raffle

In order to set-up a Raffle you need to own the ENS that'll be the prize of the Raffles.

As said, the ENS domain is submitted to the raffle on Ethereum network (L1) and then the Raffle Tickets are sold on Arbitrum network (L2), so the gas fees to buy a ticket will be affordable for everyone.

Define Raffle objectives

Time period - Domain owner decides the beginning and the end date of the raffle

Ticket price - The ENS domain owner define the ticket price in ETH or USDC

Max ticket per wallet - Owner can also define a maximum number of tickects each wallet can buy

Softcap - It works like a reserve price. If this amount is not reached by the Raffle deadline, all ticket buyers are refunded and the domain returns to the owner. It is not mandatory, but it is recommended, since without softcap a raffle could be won even with a single ticket sold. represents the maximum amount the owner can receive for his domain (before commission for ENS Raffles and any Referrals). Dividing softcapper the price of each ticket yields the minimum number of tickets that must be sold for the raffle to be successful

Hardcap - It represents the maximum amount the owner can receive for his domain (before commission for ENS Raffles and any Referrals). Dividing hardcap by the price of each ticket gives the maximum number of tickets that can be sold

Referral fee - ENS domain owner decides whether to provide a referral fee for tickets sold in the raffle and can choose a fee ranging from 1% to 10%. This commission will be retained at the end of the raffle and distributed to automatically to the referrers.

Commit ENS domain

After defining all Raffle variables, the domain owner must sign a transaction in which he transfers the domain within an escrow smart contract.

The ENS domain will remain in escrow until one of two determining events is triggered

1. The raffle reaches softcap and runs out of time, or it reaches hardcap before expiration. - Chainlink identifies a winner, who can redeem the domain on Layer1 Ethereum - The raffle owner can redeem the amount (ETH or USDC) collected from ticket sales (net of fees) on Layer2 (Arbitrum)

2. Raffle does not reach softcap and runs out of time. - The domain becomes available to the owner again - All those who purchased tickets can redeem back the funds used to purchase tickets