Lotteries are synonymous worldwide. They offer participants the opportunity to stake a minimal amount of money in exchange for the opportunity to win much greater sums. The largest single win of a lottery ever was recorded at $1.537b in 2018. A truly life-changing event!
This situation is replicated, albeit at a smaller scale around the world, weekly. Certain countries have long-held traditions like Spain, where the Christmas Lotto is a huge cultural event. People wait and save all year to buy big on the Christmas lotto. Families and colleagues group together in the hopes of securing some supercharged Xmas cheer, and a select few achieve precisely that. For most people, the lottery has been around for so long that they can’t remember a time before it. But where did the idea of the lottery start, and what’s made it so popular for so long?
The first recorded lottery was issued in 1567 by Queen Elizabeth I. At this time, England was seeking to expand its export markets around the world. The lottery was intended to raise money for the enormous costs of building ships and developing ports.
Today the lottery is big business. Considered maybe the most palatable form of gambling, it accounts for a considerable slice of the global gambling market, $516b. As seen below:
Maybe surprisingly, this isn’t replicated when looking at the online gambling market, $70b.
In a digital age, when most sports wagers in the UK are placed online, using platforms and apps like bet365 and Skybet, you’d think the trend would follow with the lottery. Why this hasn’t happened is a question today’s biggest lottery operators have been trying to solve. Innovations like lotto apps and different types of draws have gone some way to increase adoption, but there is still some work to be done.
So, what is the future of the lottery model? How can Blockchain and smart contracts genuinely change the landscape?
Today in 2021, trust and the lack thereof in authority is everywhere we look. From what social networks do with our data to how much we allow our cell phones to track our movements, society has slowly become more suspicious and sceptical. Considering this, it’s unsurprising that some people list their lack of trust as the primary reason they don’t play the lottery.
Until recently, lotteries had to be centralised business models, whereby the player gives the organiser his/her money and relies on the organiser to execute a fair draw. It is then up to the organiser to distribute the funds to the winner(s) in line with their terms and conditions.
This model, albeit extremely successful worldwide, does pose some questions.
Firstly, as a participant, how can I be sure the draw was fair?
Additionally, how can I trust the funds were truly and genuinely distributed?
The reality is you can’t.
The existing model is based purely on faith, and in an age where trust isn’t necessarily a given, what can be done?
Trust-less lotteries, made possible by Blockchain and smart contracts.
We lead a growing number of companies that offer a new age of lottery players a better choice.
As represented in the diagram above, participants have total visibility on the funds and their distribution through smart contracts. Money goes in and is distributed out, directly through a smart contract. No middleman. No third party.
Chainlink, a leader in the blockchain industry, have also created a provably fair way of picking winners:
Whilst the potential winnings will one day be far larger, blockchain lotteries cannot currently offer the same type of jackpots as traditional lotteries, purely as there are currently less participants. This will change as we move into greater adoption of blockchain technologies, but right now, lottery players have to decide between the two options: the slightest slither of hope that accompanies huge payouts (more on this later); or smaller, more probable payouts, but with innovative and fair protocols.
Goobig will bridge the gap to give lottery players truly the best of both worlds. Goobig’s idea is to allow the prize pool to accumulate over a longer period of a time: 1 year.
Participants don’t have to worry about the lottery organiser running off because the funds are visible, traceable, and locked in smart contracts. Participants buy their entry and watch the prize pool build up over time. Jackpot draws take place as different milestones are hit, heavily incentivising the earliest adopters.
Winners are guaranteed due to the fact they are not selected based on matching random numbers, like in a traditional lottery. Instead, winners are attached to GooWeekly tickets generated upon entry. Think about it more like a raffle.
As the main prize pot builds up, weekly winner-takes-all draws will also take place. Through frequent participation in the weekly games, participants improve their chances in the main draw.
It’s the Odds
Chances of winning traditional lotteries range between 50–300 million-to-1. Subsequently, it’s no surprise the odds of winning are never promoted; would you bet on being hit by a meteorite? It’s different with Goobig. A guaranteed number of winning GooWeekly tickets, 59, and a limited number of entries, 1 million, plainly and vastly improve the odds of winning the jackpot.
As the number of entries are limited, increasing your stake significantly improves your odds. Buy two entries and your odds of winning one of the 59 jackpots are obviously, halved. Ten and your odds of winning a jackpot are 1694 to 1. Hello!
Each entry can cost as little as $15. Ten tickets over a year therefore costing $150.
Prize Pool Interest
While the Goo59 prize pool builds up, numerous jackpot winners are announced at different milestones, offering a huge incentive for the earliest adopters.
Meanwhile, the entire prize pool smart contract is staked to earn interest. Over the year, this will compound returns to significant sums.
Innovative Defi Protocols like Aave and Compound offer secure and highly lucrative returns for pools such as this one. Goobig will use the interest to reward its players. Rewards will be in the form of cash bonus prizes and other rewards (to be covered in a subsequent blog). The main point is it’s another avenue to win, but not the last.
Participation in Goobig is facilitated through GooToken. Users will purchase entries using GooToken, and will be rewarded in GooToken.
Now for the interesting bit.
GooToken has a fixed supply, and only a small fraction of this supply will ever be in circulation. 72.8% of every GooToken deposited is locked in a smart contract, for up to 12 months. Removing them from circulation.
As more winners are announced, more people will naturally get involved, resulting in an increase in demand for GooToken.
As these new participants deposit, more and more GooToken will be locked.
As you can see this creates an excess of demand and diminishing supply, resulting in a natural increase in the value of GooToken.
Anyone holding GooToken will see their value increase ALONGSIDE the competition.
As users will only ever pay a USD equivalent in GooToken, the cost to enter will never change, just the value of the currency you’re using.
Goobig was designed to give all the power and potential to its community. The faster and bigger it becomes, the more valuable it becomes for its participants.
With such strong network effects it’s conceivable that Goobig could become the world’s biggest lottery relatively quickly. Think about it — Biggest prizes, best odds and GooToken potential. Why not?
Blockchain has changed the way people will play lotteries forever.
Who’s ready for the era of the “smart” lottery?
Follow Goobig on our socials for more updates before it’s release.
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