Trading frogs for Bitcoin since 2016


Great question! In short, Rare Pepes are the first user generated NFTs. They were created on top of Bitcoin in the 2016 - 2017 period, using the Counterparty protocol.

To learn more about their history, check out this awesome presentation someone made.

Dispensers are a magical Bitcoin smart contract that functions like a vending machine.

The dispensers ask for a specific amount of BTC for each pepe they can dispense. If you send the amount asked for, it will dispense the pepe back to the address you sent from.

You heard that right, the dispenser will send the pepe back to the address you sent the BTC from. This means that to receive your pepe you want to use a wallet that can see and access the pepe. Such as RAREPEPEWALLET.com or Freewallet.io. Also known as a Counterparty enabled wallet.

In cases where the vending machine has multiple units of a pepe, like PEPECASH, you can send the cumulative equivalent of the amount of PEPECASH you want.

For example, if the PEPECASH is priced at 100 SATS, and you want two of them, you can send 200 SATS and you will get 2 PEPECASH. That is, of course. If the dispenser has 2 PEPECASH available. If you send more Bitcoin to a dispenser then it has available stock for, you will have to try and find the owner, not a trivial task. Kinda like trying to find the manager if a vending machine won't spit out your drink!

In such cases you can go and try to find the owner of the dispenser on the Rare Pepe telegram group or ask for help there.

It's also possible that someone sent BTC to a dispenser right before you do, and they get the dispenser first, emptying the stock available.

To protect users from this problem, we link directly to Xchain, a more detailed block explorer that will warn you if the stock has been emptied. It also shows unconfirmed transactions that are incoming trying to take a part of the stock of that dispenser. Here’s an example of an active dispenser.

We only display dispensers that are open at the time the page is loaded.

Rare pepes live on a Bitcoin sidechain called Counterparty (XCP). As such, pepes can live on any Bitcoin address, but only wallets that support the XCP protocol can show them to you and let you send them to other people or access their bonus content.

When you send BTC to a dispenser, the dispenser automagically sends back the equivalent amount of pepes back to the address you sent to. If you send the BTC from an exchange or a non XCP enabled wallet then the pepe might be stuck there and it might not be easy to get it back.

So, only use RAREPEPEWALLET.com or Freewallet.io when you send BTC to Bitcoin dispensers. We do not recommend any other wallets.

The best and recommended way to do it is with Freewallet.io’s Desktop version. You will need to have at least 0.5 XCP on the wallet and some BTC to pay for the transaction fees, as it all happens on top of Bitcoin rails.

When you create a dispenser you are sending your Pepes to a distributed Counterparty escrow, a kind of smart contract. You are also giving it a receive address that should be different than the address you are sending the Pepe from. It is important that this address be new and not used regularly as any transactions that enter it could trigger the dispensers and send out Pepes.

When you create a dispenser you choose how many units of a Pepe you want to dispenser and how much BTC has to be received per asset. You can buy multiples of an asset if the dispenser has stock available and if you send the equivalent amount of Bitcoin.

The Dispenser looks at the receiving address and if it observers a BTC deposit to the receiving address then it dispenses a PEPE to the address that sent the Bitcoin automagically. This transfer does not take an extra Bitcoin transaction, it is settled on the Counterparty L2.

Please note that Dispensers can not send money to Bitcoin addresses that start with a 3, only addresses that start with a 1 or a b. Aka Legacy or Segwit addresses, no p2sh or scripts.

Also note that to cancel a dispenser you need to have the private key of the receiving address loaded up into a Counterparty compatible wallet.

Last but not least, it is possible to put multiple dispensers on one address, but this is not recommended as it is off standard behaviour that might cause confusion for buyers and sellers. It is advised that every dispenser have a fresh Bitcoin address that is not reused or used for anything else.

XCP and PEPECASH are currency-like assets on top of the counterparty protocol. Counterparty is a side chain protocol on top of Bitcoin. This protocol supports a form of on-chain decentralized exchange that is trust minimized in nature. This means that there is no counter party, no custody risk, no third party middleman. You can trade your pepes with buyers directly.

Sadly, because Counterparty is a kind of layer two protocol, it can not integrate Bitcoin directly into this DEX scheme. So only XCP and PEPECASH are really supported in this DEX format. However, Bitcoin dispensers are a functional alternative if you want to buy your Pepes with BTC which is much more liquid and easy to acquire than XCP or PEPECASH.

One of the major benefits of the DEX is that you can place buy limit orders for a specific Pepe, and those orders will be visible to the market, letting you know where the active floor for a pepe might be. This is something currently not possible with Bitcoin dispensers.

There are two recommended ways to access the Counterparty DEX. Rarepepewallet.com (easier, less advanced features) and Freewallet.io for Desktop (advanced features, harder to use).

The easiest way to get PEPECASH or XCP is to buy them from dispensers with Bitcoin. Though you can also try to get them from an exchange.

Rare Pepe World uses Bitcoin as the primary currency for pepes. This means that pepes costing tens of thousands of dollars or 0.50 cents worth of BTC all get denominated in Bitcoin.

The problem of course, is the gigantic numbers! Look for example at GIVEKUDOS. It is worth (at the time of writing), more or less, 0.50 cents worth of BTC. Which comes out to 0.00000750 BTC, or 750 Satoshis.

Which one is prettier in this example? Well, of course, 750 Satoshis.

In a case where the price of a pepe is above 1 million Satoshis, such as LordKeke which is a whopping 2100 BTC(!), we would have to show it as 210,000,000,000 Satoshis! That doesn't make sense. So we show it as 2100 BTC instead!

Does that make sense? Kind of how "Dollars" and "Cents" work. BTC and Satoshis are two ways of looking at the same monetary amount.

The Counterparty protocol has been around for a while and concerns about scaling have been with us as much as any other Bitcoin project. In fact, the fee prices post 2017 were a reason why the protocol kind of lost prominence. However, they continued to develop with scalability in mind.

One of the key things about Counterparty transactions that has a big impact is that XCP assets are essentially transferred at a layer two protocol managed by counterparty, which stores some of the relevant bdata on the op-return area of Bitcoin transactions. This means that one transaction on the Bitcoin on chain layer can trigger multiple transfers on the XCP layer. This is particularly true with BTC denominated dispensers.

Counterparty also has a protocol to send assets at scale, so that if you want to move a lot of NFTs for example from one address to another, this can be done more efficiently.

Last but not least, there might be ways to move Counterparty assets to the Liquid Network if demand for such a thing arises. Currently many pepes cost hundreds of dollars or more, matching the high value use of Bitcoin as a settlement layer. If this gets priced out by onchain fees, there are options to potentially move assets to a higher layer, like Liquid. Currently however, fees are very affordable, especially compared to Ethereum or past eras of Bitcoin.

Counterparty also supports Bech32 transactions and is positioned to benefit from the ongoing scalability developments made by Bitcoin core.

The "Real Supply" shown throughout rare pepe world is a custom calculation we do in order to more accurately reflect the supply of pepes in the market.

Where we differ from most other services in the space is that we take obvious burn addresses into account when counting the pepe supply and subtract assets on those addresses from the total supply.

We also include asset destructions on top of the XCP protocol, unlike some sites.

If you have created a new burn address and would like us to add it to our list to reflect updated balances, please email it to us at rarepepeworld@pm.me.