The crypto-based no loss lottery system
No Loss Lotteries
Lotteries are something that most adults are familiar with, in fact, households with earnings less than $12,000 per year spend 5% of their income on lottery tickets. This is a big number, what isn’t such a big number is the amount of people who benefit from winnings from the lottery. Seemingly non-existent are lotteries that have no losses, until now. Dapps are decentralized applications and this is one I think you’ll want to hear about if you like to play the lottery; Pool Together is an exciting way to play lottery games with no chance of a loss. Some might be confused as to how this can possibly work – so here’s how;
Also known as prize savings accounts, the no loss lottery is open source – which brings the element of transparent software that anyone can audit. Pool Together is a Dapp that is available to anyone that has an internet connection and by using a crypto wallet such as; MetaMask, WalletConnect, Rainbow, Argent, Trust Wallet, Gnosis Safe, Coinbase Wallet, Trezor, Ledger, Fortmatic, Portis, Authereum, Torus, Lattice, Opera, or Web3 Wallet. If you don’t already have one of the wallets listed, you can easily install and fund your wallet within seconds.
So, How does this work?
There are multiple cryptocurrency prize pools to choose from, look for the one that corresponds with your wallet of choice. Each of the prize pools will show you how often the winners are chosen, most of them are weekly drawings with some daily drawings sprinkled in there. To access more information about each of the pools, simply click anywhere in the box for the pool you’re interested in learning more about. This will drop down a box of information that includes how much the prize is worth, when it will be awarded and how many drawings there have been so far with this particular pool.
Another interesting feature of this Dapp is the loot box, the loot box is a separate prize that is awarded to the grand prize winner. The lootbox includes donations of NFT’s and tokens like Aave and Compound. Below the lootbox and the pool winnings, you will see the winning amount for the Grand Prize and the Runner Up prizes. The Pool’s Stats information area will give you all of the details about the eligible prizes, the amount in deposits, sponsorship, reserve, yield source and more. Something important to check out would be the past prizes that have finalized in the past.
How to get started
The easiest way to begin would be to choose a pool that offers a 1:1 stablecoin to USD matching, for example 1 Dai = $1 so you will receive 1 lottery ticket for every $1 ticket purchased. Your tickets will remain in the pool week to week until you decide to withdraw the funds. There are several unique features to the prize pools, a person can actually win more than once in a single drawing, if more than one of your tickets are chosen in a single drawing round, you will earn those winnings, even if they are from the same wallet.
For those of you wondering if this system could be abused, they’ve already blocked this from happening. For example, some might wonder if it is possible to deposit just before a drawing is to take place, and then pull out funds right after it ends if they lose, there is a 10-day early withdraw penalty which is a 1% fee that is implemented at the time of deposit and lowers over the 10 day period to become a fee free withdrawal after the 10 day period has expired.
Where does the prize money come from?
The money deposited into the pool by the players who buy tickets is collectively often millions of dollars. This is deposited into high interest earning platforms like Aave (AAVE) or Compound (COMP) to marinade for 7 days and collect interest – the amount of compound interest is displayed in the Pool’s stats area. When the winners are picked, those community funds and interest earned are moved back to the pool together app and then distributed to the winners.
The internet is evolving in ways we never thought possible, essentially developers are bringing old school entertainment right to you without having to even leave the house. I think a lot of us look at the lottery and think it was in need of a huge change, and that is where Pool Together comes in, a cryptocurrency lottery pool is the perfect solution because you not only have a no-loss lottery system but you have additional tokens that can be won as well. This is a set it and forget it type of lottery where you won’t need to claim winnings, just buy your tickets and come back to see if you’ve won, if you haven’t – your tickets will roll over into the next pool, if you want to withdraw – you can take back your deposit and do whatever you want with it.