Introduction:
The No Loss Lottery was a Prize Linked Savings Account that I ran for 3 years here on Hive, and I closed it during the bear market and returned all the tokens to the entrants. I learned and earned from that experience and put my thoughs down in a series of notes to myself should I decide to reopen it and this is the synthesis of these notes. it is the first version and the project will inevitably evolve.
@shortsegments
The No Loss Lottery: Smart Savings with a Thrilling Twist
The No Loss Lottery is a unique concept that cleverly merges the excitement of a lottery with the fundamental security of a savings account. It's built on the principle of a Prize Linked Savings Account (PLSA), offering participants the chance to win monetary prizes without ever risking their initial deposit. This innovative approach provides "Smart Fun" – a way to potentially gain rewards while ensuring your principal remains safe and accessible.
How the Original No Loss Lottery Worked
The core idea of the initial No Loss Lottery was simple yet compelling:
- Deposit for a Chance: By depositing a specific amount of cryptocurrency (initially Leo, and later Hive), participants received an entry, or "ticket," into a weekly prize draw.
- Lottery-Like Rewards: The potential prize offered was significant, often up to 100 times the value of a single ticket, mirroring the attractive payouts of traditional lotteries.
- Savings Account Security: The crucial difference was that the "ticket" purchase was essentially a deposit. Participants could request a full refund of their deposited amount at any time, just like withdrawing from a savings account.
- Automatic Re-entry: As long as the deposit remained in the system, participants were automatically entered into every subsequent weekly drawing, allowing their initial deposit to continuously work for them.
- Random Winner Selection: Winners were determined through a transparent process using a random number generator applied to a ledger of all purchased tickets.
This model offered the best of both worlds: the anticipation and potential windfall of a lottery without the fear of losing the money spent on tickets. It transformed the act of buying a lottery ticket into a form of savings with added bonus potential.
The "New and Improved" Vision: Leveraging Stablecoins and NFTs
Building upon the original concept, a new iteration of the No Loss Lottery aims to enhance its stability and introduce an element of asset appreciation through the integration of stablecoins and Non-Fungible Tokens (NFTs). This proposed model seeks to address the volatility associated with cryptocurrencies and provide participants with an asset that could potentially grow in value over time.
Here's a breakdown of the proposed improvements:
Stablecoin Investment for Capital Preservation: Instead of investing in volatile cryptocurrencies, the new No Loss Lottery would pool participants' funds into a stablecoin liquidity pool. Stablecoins are cryptocurrencies designed to maintain a stable value relative to a fiat currency (like the US dollar), significantly mitigating the risk of capital depreciation. This ensures the underlying value of the lottery pool remains relatively constant.
No Loss Lottery NFTs as Tickets and Backed Assets: Participants would purchase a unique "No Loss Lottery NFT" for a fixed price (e.g., 1 HBD). This NFT would serve as their lottery ticket and, importantly, its value would be directly tied to the value of the stablecoin pool. For instance, if the pool starts with 5000 HBD from the sale of 5000 NFTs, each NFT initially represents 1 HBD worth of the pool's assets.
Monthly Prize Distribution and Pool Growth: A portion of the earnings generated by the stablecoin pool (e.g., 50% of the monthly interest) would be distributed as prizes to randomly selected NFT holders. The remaining portion of the earnings would be reinvested back into the pool. This reinvestment would increase the total value of the pool, consequently increasing the value backing each individual No Loss Lottery NFT.
Appreciating NFT Value: As the pool grows through reinvested earnings, the value of each No Loss Lottery NFT would theoretically increase proportionally. Using the example provided, if a 1000 HBD pool earns 100 HBD in a month, and 50 HBD is reinvested, the pool's value becomes 1050 HBD. If there are 1000 NFTs, each NFT is now backed by 1.05 HBD.
Decentralized Liquidity and Trading: The No Loss Lottery NFTs would be listed for sale and purchase on decentralized exchanges like Hive Engine. This would allow participants to easily enter and exit the lottery pool by buying or selling their NFTs.
Guaranteed Buy-Back Mechanism: The pool administrator would commit to buying back any No Loss Lottery NFT at its current backed value. This feature provides liquidity and ensures that participants can always access the underlying value of their "ticket," further solidifying the "no loss" aspect. If an NFT is worth 1.05 HBD due to pool growth, the administrator would buy it back for that amount.
Potential for On-Platform Trading: As the pool scales, the platform envisions facilitating the buying and selling of these NFTs directly on its website, creating a more integrated and potentially more liquid market.
Advantages of the New Model
This revised No Loss Lottery model offers several key advantages:
- Enhanced Stability: Investing in stablecoins mitigates the risk of the prize pool's value being eroded by cryptocurrency market volatility, providing a more secure foundation for both prizes and NFT value growth.
- Potential for Asset Appreciation: The reinvestment of a portion of the earnings directly benefits NFT holders by increasing the underlying value of their asset over time, offering a dual benefit of potential prizes and capital growth.
- Decentralized Liquidity: Listing NFTs on decentralized exchanges empowers participants with the freedom to trade their "tickets" and access their funds without relying solely on the platform administrator.
- Transparency and Security: Leveraging blockchain technology and NFTs ensures transparency in ownership and potentially in the management of the stablecoin pool (depending on the implementation details).
- Incentivized Participation: The combination of potential monthly prizes and the increasing value of the NFTs could create a more compelling incentive for participation and long-term engagement.
Conclusion: Smart Fun Evolved
The No Loss Lottery, in both its original and proposed forms, represents an innovative approach to personal finance. By cleverly blending the excitement of a lottery with the security of savings, it offers a unique way to potentially win rewards without the risk of losing the principal. The evolution towards stablecoin investments and asset-backed NFTs in the new model promises to enhance stability and introduce the potential for asset appreciation, further solidifying its appeal as a "Smart Fun" financial tool. Whether through direct deposits or tradable NFTs, the core principle remains the same: the chance to win without the worry of loss, making saving and participating in a lottery a more aligned and potentially rewarding experience.
#Thankyou #for #reading #my #post
Posted Using INLEO
Technically the lottery is gambling. For some people it is addictive and results in ridiculous losses.
Obviously, nobody loses anything, so long as they know how to sell their ticket purchases, and the ticket issuer is trustworthy to redeem them as advertised.
The only thing lost is the ability to earn interest that is negated, every time tickets do not win. Only the pool earns the interest.
How frequently do these lotteries pay out?
What assurances, other than one person's word, that all tokens purchased will always be redeemable at the same stable value?
Is the guardian/admin of the pool receiving payment for their services? How much?
If I were to buy anything less than 1/12 of all tickets purchased for a monthly lottery, I would think my odds would likely lose for the first year, and the amount sitting idle in tickets would be better spent investing in solid interest, elsewhere.
I really do like the concept though. Gambling w/o the risk of losing the initial investment, and always an even one-in chance to win for every ticket. For some people, even just owning one ticket may be their fastest chance to grow big.
monthly
None
10% of monthly pool interest.
So on 15%, 1.5%.
This is a careful analysis you have done.
You are right that there are better investments.
This however is a lottery with benefits.
So it should be compared to other lotteries, not other investments.
When you do that, it is a win win.
This is such a good product. I am amazed your first one lasted 3 years with no help from Hive or Leofinance.
You provided regular prizes weekly and in the end you gave everyone back their crypto when you closed it.
You have earned peoples trust, so when you open this new No Loss Lottery with changes making it even safer then before, it will be a no brainer to invest with you.
Thank you
Thank you for the encouragement.
Your welcome.
I reember the No Loss Lottery, I was in it for three years and won some prizes. I like the idea of using stablecoins instead of potentially volatile crypto tokens like Leo or even Hive. I also like the idea of earning yield and having a chance to win prizes. I think your 75 former customers will remember you and join you, but I think a larger market exists on the outside.
Thank you for your support.
The funny thing is I heard that you were bringing back the No Loss Lottery and I wanted to see the reaction. It was a marvelous idea, but your loyalty to Cubfinance was it's undoing. I had hoped you would bring it back long ago while HBD earned 20%, but 15% is still very good and the chance to win a prize is always nice.
I think your timing is good thought, because this bull market is about to end, and smart crypto investors will be rotating into stables. So your timing is very good.
You should contact all your old cutomers, because they know you and trust you to do the honest things. Plus your making it more transparent and easier to redeem with this custom token. It makes it more like being a liquidity provider on defi, becauee you customer controls their redemption and the stablecoin aspects protects the principle.
If you can figure out how to guarantee the buy backs even the newbies who don't know you will be convinced. But youare already making it much better. Stabels, instant redemptions without permission, no lag time to get in and no lag time to get out. Good plan. Firm it up and take input from people with a different point of view.
Thanks for the suggestions and the encouragement.
#hive #posh
Thanks
Welcome
I will send in some HBD, lets get this party started.
I grew up with this mindset that anything that involves lottery will definitely result into loss. Though some people still profit in lottery actually
And I think you are right.
The probabilities of the average lottery are several million to one, but the No Loss Lottery changes the math from one in a million to one of one, you always win, it's just a matter of how much; preserve your capitol:win, earn interest gains on your capitol; win, chance to earn large prizes; win. Note to self it's a win-win-win situation.
That's true. The issue is not everyone might be able to make use of the strategy you said. But if it is win win situation, then it is not bad to give it a massive try
Thank you for your support.
I don't know that you have done something like before. It is cool to see how it combines saving money with the fun of a lottery, but without the risk of losing anything.
Using stablecoins and NFTs makes it even smarter and more secure, especially with the chance for your "ticket" to grow in value over time. I must say this is a great work. Maybe you should try and reintroduce it since it benefits it way beyond the risk.
Thanks for the encouragement.
So I have a chance to win big and no chance to lose?
Cool.
I was a customer for your previous projects EasyDefi and No Loss Lottery 1.0 so I am cool with you, you paid me for over a year with EasyDefi and it was very good to get dollars in Costa Rica, and when I was in Thailand and Phillipines it was like heaven to earn dollars. So sign me up!