Tramco, in Rathmines, went ahead with the controversial stunt last night despite being at the centre of an alleged rape just three months ago.
Gardai are still investigating claims by a 15-year-old girl that she was sexually assaulted by a teenage boy in the gents' toilets of the club.
The club last night launched a new promotion calling on clubbers to expose themselves -- or pass on their underwear -- to attain a free drink of their choice.
The club's DJ reminded crowds throughout the night that it was "knickers for liquor" from midnight onwards.
Following the DJ's announcement, scores of clubbers rushed to the nearest bar to exchange, or expose their underwear to receive a free drink. And promoters explained that last night's promotion was a "test of other promotions to come".
"We hope this goes down well. If it does, then hopefully we'll set up similar promotion nights in the future," a member of the promotional staff said.
Young drinkers told the Herald that they had no problem exchanging or exposing their underwear because it was "all in the name of good fun".
Clubbers were last night spotted flaunting their underwear and posing in an explicitly sexual nature in order to take advantage of the free drink promotion.
Those taking part in the offer said they had no problem exposing themselves because it was "harmless" and provided them with an opportunity to "get more booze".
One 18-year-old girl from Rathmines said she didn't mind exposing her underwear because it meant drinks were free throughout the night.
"I don't care. I got free drink for the whole night. If flashing my underwear can get me drink then that's fine with me," she said.
Male clubbers were spotted exposing their underwear while crowds cheered on in encouragement.
"This is great. I've only paid for two drinks the entire night," one man said.
When asked where the underwear goes when it is handed over, promoters said: "In the bin of course, where else?"
Spokesperson for the Rape Crisis Centre, Ellen O'Malley Dunlop, condemned the party.
"This is just totally insensitive after the incident that happened in the club. It's promotions like this which are objectifying sexual behaviour."
She added: "People are entitled to have fun but this is totally exploitative and objectifying. We certainly wouldn't be supporting something like this."
Promoters at the club refused to comment on the recent allegations of a sexual assault.