Author: Kyle
Review: Lemon
Source: Content Guild - News
Originally published on: PermaDAO
Original link: https://permadao.com/Aolotto-1-d9151989c7f54d409fbc30c94d6f606f
Lottery has always been a consumer product for the general public, satisfying people's entertainment and hope needs, and has a broad mass base. In the Web3 world, decentralized lottery protocols can not only eliminate the drawbacks of the traditional lottery industry (such as black box operations), but also create a scene of "sharing happiness is worse than enjoying it alone".
Haven’t become rich overnight? It doesn’t matter, at least you can get a share of the platform’s revenue. This is the “profit sharing” concept that Arweave & AO Ecosystem has always advocated. Not only that, now everyone only needs 1 US dollar to enjoy a smooth on-chain betting experience on the Aolotto platform.
Aolotto is the first decentralized lottery protocol in the AO ecosystem. The product has not yet been officially launched, but its token economic model has been recently announced. Let's take a quick look at Aolotto's gameplay, product highlights, and economic model details.
How to play Aolotto
Aolotto officials have not yet officially released the details of the gameplay. The following content is compiled after in-depth communication between the author and the team ( Twitter: @aolotto_dao ). If there are any changes, please refer to the official information of Aolotto.
Specifically, Aolotto is similar to the traditional digital lottery in terms of gameplay. Players select the hundreds, tens, and units from 0 to 9 and place bets using wUSDC. After completing the bet, players can also receive $ALT platform token rewards. Subsequently, the Aolotto protocol generates a lucky 3-digit number between 000-999 based on a random algorithm.
The draw time for each round is not fixed. To trigger the draw, one of the following conditions must be met:
- If no one places additional bets within 24 hours after the last bet, the prize will be drawn automatically after the countdown ends.
- When the total amount of bets in the current round reaches the set target value, the prize draw will be triggered.
The winning player can win 50% of the total prize pool of the round, and the remaining 50% will be transferred to the next round as the initial funds of the basic prize pool. If there is no winning player in the round, the last bettor in the round will receive 50% of the total prize pool. In addition, all players who participate in the betting can receive $ALT token rewards.
Aolotto product highlights
Specifically, the product highlights of the Aolotto protocol include:
- Ultra-low betting threshold of $1 : Users only need to spend a minimum of $1 to participate in the betting (the maximum multiplier for a single transaction can be up to 100 times), and no gas fees are required.
- Participation without access restrictions : The agreement has no geographical or identity restrictions, and anyone around the world can directly participate.
- Transparent lottery drawing process : The lottery drawing is completely based on the on-chain HMAC algorithm. All data and logic can be publicly verified to ensure the credibility and fairness of the lottery results.
- Anonymous prize collection mechanism : Winners can withdraw their rewards anonymously without revealing personal information, fully protecting the privacy of participants.
- Smooth user experience : The Aolotto protocol is built on AO and supports any number of processes running in parallel, effectively alleviating network congestion problems.
- Permanent continuous operation : Both the front-end and back-end run on the Permaweb, and lottery rounds can be carried out endlessly, truly realizing a "never-ending" game.
Aolotto Token Economic Model
$ALT (AoLottoToken) is the native token of the Aolotto platform and the circulating currency of the future LottoFi ecosystem. $ALT tokens are used to incentivize users to place bets and are also a key tool for participating in platform dividends and governance.
$ALT starts with a circulation of 0, with no team reserve, no VC, and no fixed circulation cycle. $ALT can only be minted through user betting behavior, i.e. Bet to mint, and the final maximum circulation will not exceed 210,000,000 (210 million) pieces.
Token issuance mechanism
$ALT tokens are issued mainly through two methods: Bet2Mint mechanism and faucet rewards.
- Bet2Mint Mechanism : Minting $ALT tokens through betting;
- Faucet Rewards : Early users can obtain the "coinage buff (ALTb)" through the faucet. After obtaining the ALTb buff, staking can mint more $ALT tokens.
Bet2Mint mechanism is the main issuance mechanism of $ALT tokens. There is no fixed issuance cycle. The minting speed of tokens depends entirely on the betting activity of users. This part accounts for 90% of the total issued tokens, up to 189,000,000.
The faucet reward is used to incentivize early users. This part accounts for 10% of the total issued tokens, up to 21,000,000 tokens, minted to players who own ALTb. The faucet will be closed when this part of the tokens is used up.
Whether it is the Bet2Mint mechanism or the faucet reward, the number of $ALT tokens that can be minted in each round of betting is determined by multiple variables. The calculation formula is relatively complicated, please refer to the project white paper for details: https://docs.aolotto.com/cn/usdalt.
Token distribution mechanism
Not all $ALT tokens minted by users through betting are pocketed. Specifically, each $ALT token minted is divided into two parts:
- 80% is used to reward users : users can obtain most of the minted $ALT tokens;
- 20% is used to collect seigniorage : the collected $ALT tokens will be allocated to the AolottoFundation to support the future operation and development of the protocol.
Dividend and repurchase mechanism
The accumulated betting amount of the Aolotto platform is regarded as the sales volume of the platform. At the same time, at the end of each round of betting, the platform will impose a 40% tax on the winner, which will be used for platform dividends and token repurchase.
- Dividends for holding coins : The amount of dividends is 20% of the sales increase. The Aolotto protocol triggers a dividend every 4 hours. The dividends will be distributed to $ALT holders in the form of $wUSDC assets according to the proportion of coins held. If the sales increase during the dividend cycle is less than $1,000, the dividend will be accumulated to the next dividend cycle until the dividend standard is met.
- Buyback and destruction : Aolotto Protocol will use 20% of the cumulative sales to buy back $ALT tokens on the market. The buyback behavior is entirely determined by the automated on-chain Agent to maintain the balance of token circulation in the market and stabilize the market value of $ALT. All repurchased $ALT tokens will be destroyed. The destruction and buyback process is completely transparent, and all records can be viewed on the blockchain.
Summarize
Aolotto white paper has been released, and the product is about to be launched. Users will soon be able to experience a low-threshold lottery experience. With only $1, you can get a chance to get a "huge" surprise, and you can also mint $ALT tokens to participate in future platform dividends.
Of course, the Aolotto protocol's ambitions do not stop there. In the future, it will build a larger LottoFi ecosystem around the $ALT token. Through decentralized games, content distribution, and NFT markets, the scarcity of $ALT is further enhanced, and more opportunities for interaction and profit are brought to users, forming a diversified LottoFi ecosystem.
Aolotto official website: https://aolotto.com/
