Bitcoin Dispensers on Counterparty
In 2019, Counterparty released CIP21 (Counterparty Improvement Proposal) Dispensers.
Dispensers are virtual vending machines that accept Bitcoin for Counterparty Assets.
(Counterparty Dispensers listed on https://www.xchain.io above)
Just like a regular vending machine, put money in, get the product out. Counterparty Dispensers work the same way but with Bitcoin for Counterparty Assets.
Have NFT art to sell? Create a Counterparty Asset and set up a dispenser. When customers send Bitcoin to your dispenser, they get the art, you get the money.
Dispensers were designed in such a way that the seller only has to pay one tx fee to set up the dispenser. After set up, the seller pays no tx fees on any dispenses from the dispenser. The dispense tx fees are paid by the buyers via the incoming Bitcoin send tx fee.
Dispensers are an ingenious design by lead Counterparty developer John Villar for the most minimal tx fees possible. Dispensers can dispense to an unlimited number of Bitcoin Addresses, yet the seller only pays the single tx fee of the dispenser setup.
If you have a Counterparty token or NFT art you would like to sell for BTC, simply set up a dispenser.
Creating a dispenser is super easy, watch the video below:
Considerations when setting up a dispenser:
You only pay the one tx fee when setting up a dispenser. Smaller give amounts do not cost you more tx fees. It costs the seller the same tx fees when dispensing to 1 or 1000 buyers. Smaller dispense amounts make it safer and more flexible for the buyer.
It’s best to use a unique Bitcoin Address for each dispenser unless you plan to dispense multiple tokens at once.
Don’t use your main Bitcoin Address when setting up a dispenser if you plan to send Bitcoin to that address in the future.
If you set up multiple dispensers via a single Bitcoin Address, all dispensers at the address will dispense if the minimum BTC dispense amount is reached.
Considerations when buying from a dispenser:
Make sure the dispenser is open and not closed or sold out. If the dispenser is sold out or closed and you send Bitcoin to the dispenser, you lose your Bitcoin and get nothing in return.
Try not to send large amounts of BTC to a single dispenser at once. It is better to buy in smaller quantities multiple times if possible.
If you must send a large amount of BTC to a dispenser, set a high tx fee on the send so your transaction processes in the first block.
The maximum you can buy from a dispenser is the give remaining amount.
Downside of dispensers:
If multiple users buy from the same dispenser at the same time and the give amount remaining is only enough for one of the buyers, only one of the buyers will get the dispense.
To limit the downside risk:
Buy smaller quantities multiple times if possible. Find dispensers that allow smaller vends.
When buying from high priced dispensers, use a higher tx fee so your dispense confirms faster.
Don’t buy from dispensers with low give amounts remaining.
Some notable active dispensers below:
A RAREPEPE is for sale in a dispenser for 0.5 BTC at https://www.xchain.io/tx/c601be8077dbd4ddc3556c9b4bf17bcedd15a1b991c0af17a4ad842f8b8a7caa
SATOSHILITE for 0.0089 BTC https://www.xchain.io/tx/4404987d52956bb7e6689d6fd8ef436eb64e8bed18950a5b079c47fbc5bf0d7e
Notable Recent Sales
2 FDCARD's, the first NFT art recently sold for 0.0086999 BTC each
BITCORNWHALE recently sold 2 of 26 total cards via dispensers.