The problem Red Envelope solves

Problem: While the user experience for onchain token transfers has undeniably improved in recent years, it remains somewhat mundane and lacks a meaningful social connection, particularly if the transfer is meant to be a gift or reward. In order to attract and onboard the next billion users to Web3, there is a need for a gamified and socially engaging experience that enhances the appeal of onchain token transfers.

Solution: The concept of red envelopes has existed for over 2000 years, predominately in East Asia. These envelopes will contain monetary gifts and serve as customary presents exchanged during social or family gatherings. The red color of the envelope symbolizes good luck. In recent years, the surge in online money transfers has spurred the digitalization of the traditional red envelope, transforming it into a commonplace practice in daily money transfers and social interaction. According to TechCrunch, in 2015, WeChat delivered over 1 billion red envelopes.

Our solution is to bring the lucky red envelope onchain, enabling a gamified, and socially engaging onchain token gifting experience. There are two main user flows.

A) Envelope sender:

1. Input token address
2. Input total amount to be distributed
3. Input maximum number of envelopes available
4. Click on create envelope

Under the hood, by using the Inco Network's native randomness function, the system will randomize the amounts to be distributed to each envelope at the time of contract deployment. The system also uses FHE to hide the randomized amounts so users can't know before claiming. In other words, if the total amount is 10 USDC and the max number of envelopes available is 5, then each envelope will distribute random amounts to each claimer but still sum to 10 USDC.

B) Envelope receiver:

1. Click open envelope on Frame in XMTP
2. If there is an envelope available, click on "I'm feeling lucky" to claim
3. Check the claimed amount and compare it with friends!