Ethernal DAO Lotto

INTRODUCTION

A lotto game built on the Binance Smart Chain will be a significant innovation in the global lotto industry. The lotto industry holds a 29% share of the world's gambling income and is heading into challenges due to the growth of the virtual economy. Global demand for more transparent, fair services has grown concurrent with the advance of technologies that enable change. Blockchain technology's distributed, decentralized nature offers tremendous opportunities for financial technology innovation and, similarly, for gaming industry modernization.

A gaming system built on the Binance Smart Chain would operate with a high degree of autonomy. Its data and records would be cryptographically held in a transparent, decentralized blockchain. Available online and without borders, such a system can resolve several challenges of traditional lotteries.

The proposed lotto will employ the Verifiable Random Function (VRF) method of CHAINLINK, which is secure, fair, and prevents manipulation/fraud. This project implements an entirely secure VRF method based on the current version of the Bitcoin decentralized protocol.

Global Lottery Industry

The global lotto industry grew from $187 billion in 2004 to $294 billion in 2016, representing a compound annual growth rate (CAGR) of 4.3%. More than 64% of global lotto sales come from Europe and North America. In 12 years, from 2004 to 2016, lotto sales have declined only once, evidencing the stability of the business.

Concurrently, online and mobile lotteries are growing everywhere with the growing Internet penetration and mobile phone adoption. The speed of technology adoption can be even faster in developing markets. The total amount of money for the mobile lottery in 2016 is estimated to be 43 billion dollars, while 44% of the amount is generated in Europe and North America.

Global Lottery Industry

  • From 2004 to 2016, grew from $187 billion to $294.3 billion.

Mobile Lotteries

  • In 2016, estimated revenues of $43 billion.

Up until recently, most lotto operators were business to consumer. With the arrival of online and mobile lotteries, more business-to-business companies are now offering online lotto platforms.

Ethernal Lotto DAO can operate as a global blockchain protocol and be offered to governments of various countries to solve challenges to ensure a fair lotto.

Integration among people, economic growth in the developing world, and progress in information technology will accelerate changes in the lotto industry, especially in the emerging markets. The global lotto industry is moving closer to cross-border, high-technology lotteries, and blockchain technology can be the stepping stone needed for this innovation.

Ethernal DAO Lotto
at a Glance

01

What makes Ethernal DAO lotto unique?

For the first time ever, you can play the lotto from any location in the world!

Tickets costs are low, and jackpots are enormous.

Winnings are in crypto and untaxed.

Lotteries take place every 12 hours.

The lotto is decentralized and cannot be manipulated. Numbers are drawn randomly with the help of the Chainlink blockchain-based VRF.

Winnings are sent directly to the winner's wallet. No need to claim or take any other action.

02

How do I play?

Buy lotto tokens (available on Ethernalswap or via the Ethernal Finance official Dapp), and use those to purchase tickets on the Dapp. Four tickets cost the equivalent of $2 of lotto tokens.

Tickets purchased during a round are valid for that round only. New tickets can be purchased for each round.

If you are the lucky winner, 75% of the prize pool will automatically be sent to your wallet.

03

How does the lotto benefit Ethfin holders?

10% of funds collected from ticket sales is used to purchase Ethfin and send it to the liquidity pool, raising the floor and stabilizing the price.

15% of funds are used for marketing, bringing new investors to the Ethernal ecosystem.

Other projects can use the lotto system to raffle off their own tokens, with Ethfin holders also reaping the benefits.

Challenges Faced by Lottery Industry

Blockchain technology can solve challenges faced by the lottery system. As with all centralized services, lottos have real and perceived trust issues. Some of the most familiar lotto industry problems are described below.

Fairness

Ensuring the fairness of the game remains the biggest challenge. Lotto players may question the possibility of manipulation or fraud, e.g., several possible concerns:

  • Are the ticket and lottery real?

  • Is RNG (random number generator) genuinely random and secure?

  • Is the jackpot winner real?

  • Are the prizes paid on time?

The two famous cases of lotto manipulation described below illustrate the cause for concern.

Hot lotto scam. Eddie Tipton, the ex information security director of the U.S. Multi-State lotto Association, put a code that allowed him to influence random number generation and predict winning numbers on specific days, which led to his winning a $14 million jackpot.

The Pennsylvania lotto scam (known as the Triple Six Fix). This was a scheme to rig the Daily Number, a 3-digit game offered by the Pennsylvania lotto. Every ball in the three machines, except those numbered four and six, were rigged, and as a result, the numbers picked were almost sure to be a combination of those numbers. The scam was successful in that 666 (one of the eight combinations that the plotters were hoping for) was picked on April 24, 1980; however, police were alerted by weird betting patterns. The head guy in the plot was sent to prison, and most of the acquired gains were not paid out.

Regulations

In some countries, lotteries are illegal, and in most countries, only governments and affiliated organizations can obtain a license to operate a commercial lotto business. Corruption schemes that can affect the distribution of funds may occur in different areas.

Availability

In some countries, lotteries are illegal, and in most countries, only governments and affiliated organizations can obtain a license to operate a commercial lotto business. Corruption schemes that can affect the distribution of funds may occur in different areas.

Players are limited to playing smaller, local lotteries due to the smaller size of their domestic market, underdevelopment of the lotto industry at home, or strict rules. Players from other countries cannot easily participate in some of the biggest lotteries globally, such as Euromillions or some lottos in the USA. New online solutions that allow such users to buy worldwide or U.S. lotto tickets have recently gained popularity. Still, the service charges, as well as risks of scams and mismanagement, remain high.

Currently, lotteries are controlled and regulated by governments in most parts of the world. It should be noted that lotto players have no control over how much money is charged from ticket sales. In addition, lotto winnings are taxed, and in some countries (for example, the U.S.), as much as 60% can be withheld.

The average price of a lotto ticket is about USD 2.00. Lotto machines draw the winning numbers for a lotto at different times. It is believed that the lucky numbers are drawn randomly, but there are ways to manipulate the results. It is easy to make it non-random by putting radio frequency identification tags on lotto balls (even an ape could do this). To make their lotto look more credible, organizers arrange live television broadcasts and set up lotto commissions.

We conclude that any lotto is a source of government revenue earned at the expense of citizens through the unequal distribution of funds collected from Lotto sales.

Many gambling industry representatives are upset with this system, and a few reasonable attempts have been made to organize an open Internet lotto. However, the traditional approach to organizing a lotto involves using a single server that may belong to a single owner and has long been distrusted because nobody can check the RNG or lotto parameters other than a narrow circle of interested parties.

Blockchain technology can help us solve these issues. However, projects that use blockchain technology are not always transparent enough. Let us look at the TrueFlip project as an example. If you carefully review their project description and code published on GitHub, their use of blockchain technology is limited only to the RNG. At the same time, data on the number of funds collected and the distribution of funds are stored on a single server.

How The Ethernal DAO Lotto Works

We have built a transparent and decentralized platform for organizing and conducting a lotto using blockchain technology and BSC smart contracts to collect and distribute funds, draw winning numbers randomly, and pay lotto tickets sales commission back to the main Ethernal Finance DAO contract ($ETHFIN). Initially, it will provide additional liquidity, making ETHFIN a more stable store of value. Later it can be used to fund liquidity in various other utilities that will be voted on by the Ethernal Finance community (e.g., ETHFIN pegged tokens like BUSD).

The Ethernal DAO lotto prize pool is formed from 75% of the funds collected from ticket sales.

Distribution of Funds Collected from Lotto Ticket Sales

  • Prize pool
    75%
  • Advertising fund, technical costs
    15%
  • Providing L.P. on MAIN ETHERNAL CONTRACT
    10%

There is a drawing every twelve (12) hours in each round (timeframe is subject to change depending on demand. It will never be changed in the middle of a round, only — when necessary — before beginning the next round). Numbers are drawn randomly with the help of the Chainlink blockchain-based VRF. Winnings are autonomously transferred to the owners of the winning tickets through the algorithm built into the smart contract.

Winnings are autonomously paid in full within 90 seconds of the drawing. Transfers are made to the cryptocurrency wallets used to buy the winning tickets in the drawn lotto.

All operations in the system will be carried out based on the mechanisms made into smart contracts, which will the possibility of their being influenced by the lotto organizers. Everything will be done automatically and transparently.

To corroborate what has been said, we will release the complete source code of the Ethernal Lotto DAO at the beginning of our initial pre-sale. Everyone can check it and see that the smart contracts correspond to their description in this whitepaper.

WHY THE Ethernal Lotto DAO WILL BE PLAYED ALL OVER THE WORLD

  • The initial guaranteed prize pool WILL BE HUGE.

  • The jackpot amount can grow up to thousands or millions of dollars.

  • A record 75% of funds collected from ticket sales will be allocated to the prize pool.

  • Neither winning numbers nor lotto tickets can be faked.

  • Payout procedures are transparent.

  • The lottery is based on the BSC blockchain and utilizes Chainlink for their Provably Fair Verifiable Random Number (see here for more details). All the parameters of the lottery are included in the program code, which will be open to anybody willing to check it.

  • This lotto cannot be banned. You only need internet access and a Binance Smart Chain defi wallet to play it.

  • A comfortable, friendly interface and a game played in one click.

  • At the platform launch date, 1 ticket costs USD 2.00, an amount that millions of players worldwide are accustomed to.

  • There is no possibility of system abuse.

  • The Ethernal DAO Lotto is anonymous.

  • Winnings of any size are delivered almost instantly after the round ends and are not taxed.

  • The fact that the lotto platform is a DAO means that the platform will operate unaided and automatically as long as there are gambling enthusiasts, the internet, and cryptocurrency.

Ethernal Lotto FAQ

1. How will the project be launched?

Once the pre-sale round ends, we collect the funds from DXSale and purchase the required link tokens for the PROVABLY FAIR CHAINLINK VRF FUNCTIONS and load the initial prize for the first round. The lotto will be launched in ready-to-operate mode, which means that users will enjoy all its features, partake, and win, the moment the lotto is loaded and public sales open. When the ICO opens, players will be surprised to see a finished product and a considerable prize pool available to be won in real-time mode.

2. When will Ethernal Lotto DAO tokens be listed on the rewards payout of the main Ethernal contract?

Our tokens will be listed within 5 minutes of the pre-sale ending and public sale starting.

3. How much money can I invest during the pre-sale and open round?

The amount of money is not limited. Tokens will be sold for USD 0.25 per token (on the pre-sale round) and will start trading at USD 0.28 per token (on public sale rounds). Funds will be paid to DXSale at a set exchange rate between BNB and the Ethfin Lotto Tokens.

4. How do I get Ethernal Lotto DAO tokens?

Ethernal Lotto DAO tokens can be claimed after the pre-sale round, and they will be transferred to the investor's account linked to their personal profile. After the transaction has been confirmed, the investor will be able to transfer the tokens from their personal profile to any BEP20 compatible BSC defi wallet.

5. How do I get tickets to participate in the lotto?

Tickets can be purchased using the lotto tokens on the Ethernal Finance official Dapp. The cost of each ticket will be USD 2.00, paid for with the equivalent amount of lotto tokens based on the market price at the moment of purchase (for example, if the lotto token is worth USD 0.50, a ticket will cost 4 Lotto tokens).

6. What will your marketing campaign include? Will you offer any forms of partnerships?

There are many things that we will do to promote Ethernal Lotto DAO.

As for the Ethernal DAO Lotto platform itself, the benefits that it will gain from these collaborations are apparent. The interface code accessible to users is open source and open access. Any project can provide liquidity for the Ethernal Lotto token on Ethernalswap or any swap and integrate the lotto interface into their website. In this case, they would earn up to 0.17% of every transaction made through their pool. As a result, other projects will be able to increase the number of entertainment products offered to their holders without creating new software and gain good income due to the growth of BNB, Ethernal, and Ethfin Lotto tokens.

The advertising campaign for the Ethernal DAO Lotto ICO will include the promotion of the lotto itself.

Some of the revenue raised in ticket sales will be spent placing banners and press release articles on various websites.

7. How can I know that the information about winnings and the number of tickets sold is correct? Are there any apps that can be used to check this information?

There will be a statistics tab in the Dapp lotto menu. This page contains information about the number of tickets sold, a countdown until the drawing ends, jackpot amounts, previous round winners, and links to the Chainlink VRF numbers and timestamp.

8. Where will the jackpot be stored, and how will funds be transferred there?

The jackpot for each round will be stored in the Ethernal DAO lotto contract. Funds for the initial prize pool and link tokens to fuel the CHAINLINK VRF will be transferred to the smart contract before launch and the start of trading. Additional funds can be transferred there for larger pots or special occasions.

9. If your ICO is successful, will you expand the platform (for example, adding different types of lotteries)?

Yes, we can easily add them to the platform. This is one of the many things that make our product unique.

10. Do you have different development scenarios depending on the funds raised?

Funds raised in ticket sales will be distributed to the primary and reserve prize pools. The bigger the prize pool, the more appealing it is to play the lotto. We will allocate:

- 75% of the funds raised for the prize pools

- 15% Advertising fund, technical costs (gas payments for transactions)

- 10% Providing L.P. on MAIN ETHERNAL CONTRACT and providing further liquidity to further developments on Ethernal utilities.

11. Do you have a soft cap / hard cap?

Yes. Soft cap: USD: TBD Hard cap: USD: TBD.

12. What if the soft cap is not achieved?

All investment payments will be returned to players' wallets.