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Stake2earn lottery is a new feature that will be added in order to bring more advantage than before to Staking. Every delegator already receives their usual APR/APY, now you will become eligible to win at our Staking Lottery. This lottery will be a no – loss lottery.
How does it work?
For every project, stake2earn Lottery is enabled there is a dedicated wallet that holds the lottery prize. Every 15 minutes/hour/day (depending on the blockchain) we are sending a portion of our rewards to this wallet to increase its pool size and therefore the jackpot prize.
We are also delegating the balance of this wallet to our validator, which in turn will generate more commission rewards increasing the tokens we send to the lotto wallet and this own wallet is going to generate some delegation rewards which will also divert to the total lottery amount.
The bigger the wallet gets, the more delegators it will attract which in turn the bigger commissions will get and so on... the idea is self-sustained with a little investment and there is no need for stake2earn to sell lottery tickets nor to delegators to do anything else other than delegating their tokens.
Our delegators will earn these tickets by staking a specific number of tokens depending on the chain and the current token price, these tickets are perpetual and recurring which means that they will be valid for every lottery until you withdraw/redelegate your tokens.
Your tokens will be delegated/stake as you would normally do when staking tokens. This means unlike in normal lotteries, delegators never lose their token/money and are always earning rewards through PoS (Proof of stake) even if they never win the lottery.
Lottery draw day will change from blockchain to blockchain, please check the different blockchains to know when the draw is happening.
Before the draw time, we might temporarily hold all processes related to staking and ticket generation to prevent any sort of gaming around the draw time.
You can stake and redelegate your tokens with wallet explorers but you NEED to connect your wallet to stake2earn at least once so the system recognizes you as a participant.
Fairness → The lottery drawing is conducted following a decentralized and non-predictable process. This allows stake2earn to deliver a fair lottery without relying on any central party. Nobody, including stake2earn team, can predict the winning ticket combination.
Attention: stake2earn Lottery is provided by our collaborator TedCrypto who adapted it from Glow Lotto to cosmos. The idea is the same but the contents are a lot different. Glow Lotto is now stopped due to the Luna/UST problems!
For convenience we are using dollars ($), tokens will be expressed in dollars very often when generating/enabling/disabling tickets - This aims to simplify the logic behind every chain, on stake2earn Lottery and possible price fluctuation between weeks.
Users can stake and redelegate any number of tokens from their KEPLR wallet. For every specific number of tokens delegated to stake2earn, the delegator gets a recurring lottery ticket (i.e. assuming a blockchain ticket is given for every 10TOKENs delegated, if you delegate 40TOKENs, you'll get 4 tickets). Currently, the system is generating these tickets for you automatically, not allowing you to create a specific ticket number this might be possible in the future if there is an evident need from the community.
For the example above, If you just delegate 9TOKENs, you wouldn't receive any ticket, but if you ended up delegating an additional 1TOKEN later on, you would get 1 ticket. In that same order, if you delegate 11TOKENs followed by another stake of 19TOKENs, you will receive 1 ticket from your first delegation and then 2 (for a total of 3) tickets respectively after your second stake.
If restake is enabled, delegator rewards will be automatically claimed (stake2earn will pay for the fees) and staked again on your validator. These rewards will be accounted for in the ticket system. We highly encourage our delegators to enable this feature!
Details on Tickets
Each ticket is represented by a sequence of 6 numbers, each number between 0 and 15 (both included). "1 2 3 4 5 6", "1 2 3 13 14 15", and "10 11 12 13 14 15" for example are all valid ticket numbers.
There is no limit to delegators sharing the same ticket number. In the case of multiple delegators holding the same winning ticket, all of the corresponding delegators win equally, unless a jackpot or super-jackpot happens, for these cases, the prize will be divided among all those winners, this is known as self-sustained fixed pool size (i.e.: we always guarantee a prize to every delegator).
Tickets will be enabled/disabled/created when the following happens:
- Wallet is first created/connected to stake2earn Lottery page
- Delegator makes a stake/redelegation using stake2earn Lottery portal
- Every 15 minutes when updating stake2earn staking amounts
To be eligible for the lottery one must connect the wallet to stake2earn Lottery page, even if you delegated with us before using external wallet explorers. If the wallet is not connected through stake2earn lottery app, the system will not recognize your wallet and therefore no tickets will be created for you.
Ticket price is fixed to roughly $25; this is subject to change and it will create some differences in the number of tickets allocated to you and in the system, more can be created/deactivated/activated based on this change. Ticket price will be updated manually for now before every draw, and you will be notified on our social groups (Telegram and Twitter)
If the ticket price raises then you should expect that some of your tickets will be deactivated. If the ticket price decreases then we will prioritize activating your deactivated tickets and only after that we will create more if the number of tickets to be generated is bigger than the deactivated ones.
Once a prize has been determined for one of your tickets, it will always be possible for you to claim it no matter its current state (i.e.: a prize has been given to one of your tickets that has been deactivated past that draw)
stake2earn Lottery overview
The drawing happens once per week on different days and times based on the stake2earn blockchain configuration. After the lottery is drawn, the prize is distributed among the winning ticket holders according to the prize distribution algorithm.
Claim stake2earn Lottery winnings
After winning a lottery (good luck!) You will be able to claim it from your prize’s dashboard.
Once you have confirmed your claim it will start an unbounding process of these tokens from our validator to your wallet. You will only need to do this once; the system will be in charge of unbounding the tokens and sending them to the right address (your wallet) once the tokens are available in the wallet.
Unbounding periods change from blockchain to blockchain, we will make it clear from your claiming pane. You will see a number of days counting down and then a success message saying the tokens were sent your way.
Since these claims impact the pool size you should do them BEFORE THE NEXT DRAW! Not doing it in time might lock the claim and you won't be able to claim your tokens at all.
Every week after each draw we will post a summary of the draw, number of winners and the total prize on Twitter and Telegram. Please pay close attention to these channels and visit often your prizes dashboard.
This process is not ideal but is the best one for stake2earn Lottery as explained in the Introduction. We are working hard to make it a more pleasant experience for our delegators!
How It Works
When the lottery is drawn, a "perfect winning ticket" is randomly generated. Then, the lottery pool is distributed among winning ticket holders.
A ticket is a winning ticket if at least its first two numbers match the first two numbers of the perfect winning ticket. Among winning tickets, there are five tiers: bronze, silver, gold, jackpot, super jackpot. Ticket placement into these tiers is best understood through an example.
For this example, say the winning ticket is 537801:
• 2 Sequential Matches (Bronze) - any ticket starting with 53XXXX such as 535840
• 3 Sequential Matches (Silver) - any ticket starting with 537XXX such as 537012
• 4 Sequential Matches (Gold) - any ticket starting with 5378XX such as 537810
• 5 Sequential Matches (Jackpot) - any ticket starting with 53780X such as 537802
• 6 Sequential Matches (Super Jackpot) - any ticket that exactly matches the perfect winning ticket
The payouts of the corresponding tiers of winning tickets are as follows:
• Bronze: 1/27171 of the pool size
• Silver: 1/5450 of the pool size
• Gold: 1/274 of the pool size
• Jackpot: 1/13.65 of the pool size
• Super Jackpot: 1/1.08355343 of the pool size
It should be noted that in the case of multiple delegators holding the same winning ticket, all of the corresponding deposits win equally. This means that if you win with the jackpot ticket, but that the jackpot ticket is also held by one other depositor, each of you will receive 50% of the jackpot payout.
If there are no tickets of a given category (i.e. no jackpot ticket holders) the corresponding % of the pot gets rolled forward to the lottery pool for the next lottery.
Fairness → The winning ticket is obtained following a decentralized, verifiable, and non-predictable process. This allows stake2earn to deliver a fair lottery without relying on any central party. Nobody, including the team, can predict the winning ticket combination.
Lottery Drawing Execution
When the lottery is being drawn (which happens once a week for every chain), delegating more tokens might not be accounted for when doing it close to the draw time and no tickets would have been generated in due time. Prizes are allocated automatically after the draw is known making it impossible to generate a ticket in those milliseconds from draw to selecting winners.
Prizes and odds
The following table shows the expected prize and odds of a winning ticket with a certain count of consecutive matching numbers.
|Number of consecutive matching numbers||Expected Prize||Odds|
|2 (Bronze)||1/27171 of the pool size||1 / 273|
|3 (Silver)||1/5450 of the pool size||1 / 4,370|
|4 (Gold)||1/274 of the pool size||1 / 70,000|
|5 (Jackpot)||1/13.65 of the pool size||1 / 1,120,000|
|6 (Super Jackpot)||1/1.08355343 of the pool size||1 / 16,800,000|
Note that an increase in the number of purchased perpetual lottery tickets will not decrease the expected prize payouts per winning ticket. This is because as the number of perpetual lottery tickets goes up, so does the size of the lottery pool. What will happen as the number of perpetual tickets goes up is more total prize payouts and more winning tickets each week!
The Price Of A Lottery Ticket
Stake2earn works by awarding you one perpetual lottery ticket for approx. $25 tokens worth delegated in our validator. Another way of looking at this is that each week stake2earn Lottery uses a portion of the commission reward from your $25 token worth and sends it to the pool wallet.
Continuing with this perspective, an important note is that you will never lose money with this system, as we are not charging you more commission to have your tokens delegated with us and our commission is the average among all validators. This is to be fair to remaining validators so they can also secure the network as it is important that we all do.
Please follow our Twitter for any other announcements and changes to this and other prizes.
Expected Prize calculation
Unlike some lotteries which pay out a fixed prize based on a number of matches (i.e. a fixed $50 for a ticket with 3 consecutive matches), stake2earn Lottery pays out a variable amount depending on the pool size (and for the jackpots on number of winning tickets). In the unlikely event of many fewer winning tickets than expected for a given week, each winner will receive a larger prize than expected. Similarly, in the unlikely event of many more winning tickets than expected for a given week, each winner will receive a smaller prize than expected.
Even so, we can calculate what the expected payout will be for a given number of matches and know that the actual payouts will hover around the expected payout. See the code below. Notice that it doesn't depend on the number of purchased perpetual tickets, but it does depend on the prize distribution.
# Get lotto wallet balance
lottery_pool_size = get_lotto_wallet_balance
# Set proportions based on a matching chance and prize distribution
prize_proportions = [0, 0.0000019, 0.00000368, 0.00018349, 0.0036539, 0.07326951, 0.92288942,]
# For each proportion we calculate the rewards based on the pool size
expected_payouts = [lottery_pool_size * proportion for proportion in enumerate(prize_proportions)
# Print the expected payout sizes
And the corresponding output for a given wallet balance of 300.000 tokens
The expected payouts are:
- 0 tokens for tickets with 0 matches.
- 0 tokens for tickets with 1 match.
- ~1.10 tokens for tickets with 2 matches.
- ~55.047 tokens for tickets with 3 matches.
- ~1096.16 tokens for tickets with 4 matches.
- ~21980.853 tokens for tickets with 5 matches.
- ~276866.826 tokens for tickets with 6 matches
Tedcrypto created a sub-system for each lotto on the different blockchains the lotto runs on. This is to give a better experience to everyone participating whilst securing the lotto health system.
Agoric Network ($BLD)
|Ticket Stake (min stake for a ticket)||35 $BLD|
|Minimum prize||1.5 $BLD (~ 1$)|
|Validator(s)||Tedcrypto.io 🧸 | TedLotto|
|Ticket Stake (min stake for a ticket)||10 $EVMOS|
|Minimum prize||3 $EVMOS(~ $6)|
|Validator(s)||Tedcrypto.io 🧸 | TedLotto|
|Ticket Stake (min stake for a ticket)||6 $JUNO|
|Minimum prize||0.3 JUNO(~$2)|
|Ticket Stake (min stake for a ticket)||15 $OSMO|
|Minimum prize||1 $OSMO (~$1)|
|Ticket Stake (min stake for a ticket)||200 $CRO|
|Minimum prize||10 $CRO|
|Validator(s)||Tedcrypto.io 🧸 | TedLotto|
|Ticket Stake (min stake for a ticket)||100 $BTSG|
|Minimum prize||35 $BTSG|
|Ticket Stake (min stake for a ticket)||10K $DVPN|
|Minimum prize||1K $DVPN|
|Validator(s)||Tedcrypto.io 🧸 | TedLotto|
|Ticket Stake (min stake for a ticket)||200K $CRBRU|
|Minimum prize||10K $CRBRU|
They are one-of-time draws that Network provider of the Lottery might decide to run on special dates or after tweaking the settings above.
- 08/05/2022 : TedCrypto - Extraordinary draw for our $CRBRU delegators