What is Pool Together the new cryptocurrency lottery which you can play without losing?
The new cryptocurrency lottery called Pool Together is another new lottery to play with more chance to winning than losing. Known as Pool Together this new lottery game was launched in July 2019 and is a “no-loss” lottery built on Ethereum. Players buy tickets in Dai, an Ethereum-backed stablecoin pegged to the U.S. dollar, and the funds are pooled together in a smart contract—the bigger the pool, the bigger the payout. Which means while one lucky winner will walk away with more than he “wagered,” everyone always gets at least their money back.
About Pool Together
This lottery game is created by Leighton Cusack, founder of software company Arrakis Labs. According to him, it’s a “can’t lose” numbers game that, in truth, has a lot more to do with a pooled, prize-linked savings account than any luck-of-the-draw raffle.
At a basic level, it works by taking all the capital from the purchased tickets, earning interest on it, and then using that interest as the reward. When a pool opens, players have three days to buy up tickets at 20 Dai each before the round closes. The funds are then locked up for 15 days in an interest-earning account on Compound, an Ethereum-based “money market protocol.”
The goal for this first go around, said Cusack, is to get “100,000 Dai locked during the open period,” which ends this Wednesday, and payout around 300 Dai to one fortuitous saver. Of course, you could just forego the whole “lottery” thing and stick your money—crypto or otherwise—in a savings account yourself and earn a little scratch that way.
Cusack admits that in “strictly economic terms,” a lottery isn’t really a great idea. “The very best thing would be to just put the money in a savings account and earn guaranteed interest,” But compared to walking out of a convenience store with fistfuls of scratch-off wishes and Powerball dreams, Pool Together intends to offer a “far better” alternative making it a healthy way to play lotteries.
How to play Pool Together Lottery?
You can play Pool together lottery online with your mobile or PC.
To join a Pool you will need an Ethereum-ready browser. On iPhone, iPad and Android best is Coinbase Wallet
On desktop you can play with MetaMask. MetaMask is an extension for Chrome, Firefox and Brave browsers.
You need Dai cyrptocurreny to play this game
Dai is a cryptocurrency pegged to the US Dollar. This means the value of 1 Dai equals 1 US Dollar and does not fluctuate like Bitcoin and other cryptocurrencies. You can view the current price of Dai here.
You can acquire Dai through a number of different cryptocurrency exchanges. Coinbase is one that is popular and easy to use. If you already own Ethereum you can exchange your Ethereum for Dai on uniswap.exchange.
Each lottery ticket costs 20 Dai!
When the Pool is Open you can buy as many tickets as you want. Each ticket represents a chance to win the prize. All the DAI you put in the pool you will receive back when the Pool ends.
Your chances of winning depend on how many savings tickets are sold before the Pool locks. For example, if 1,000 savings tickets are sold before the Pool locks and you bought 1 ticket your chance of winning would be 1 in 1,000.
When the Pool is complete you can withdraw all your money! Additionally, one winner is randomly chosen from among the ticket holders and they receive all the interest that accrued during the lock period.
If you joined a Pool you can check if you’ve won after the lock period has ended. You’ll see the lottery winning added to your original deposit amount — if you haven’t won, you’ll see your deposit amount and be able to withdraw it!
Note that when the Pool is locked, no tickets can be purchased or withdrawn. All the money in the pool is lent on Compound.Finance to earn interest.
Pool Together Lottery a bit different
The end goal, he said, is to “displace” traditional lotteries and “move the needle on economic health” for as many people as possible. Lotteries are one of the most used financial products in the world but also one of the most damaging, but this type of lottery is a “healthy alternative to lottery tickets” will help people feel “economically safe and secure.”
But while state lotteries might contribute to “unhealthy” or even addictive economic behavior, some might say they have the net-positive benefit of funding public programs, such as schools, parks, and other social causes—something that can’t be said for Pool Together, at least not in its current form. Pool Together could, in theory, be used in the future to create pools with “pre-determined winners,” such as nonprofits. The technology upon which the crypto “no-loss” lottery is based is sufficiently flexible that it could split winnings between multiple parties, including public goods, if the pool were large enough. Note but that the 10 percent cut of the proceeds ensures a “sustainable business model.
I am OBSESSED with the potential for “no-loss lotteries” like @PoolTogether_. Unlike regular lotteries where only around 2/3 of revenue is returned to players, here EVERYONE gets 100% of their money back, PLUS someone wins a prize.https://t.co/uMIr3Ztvwj
— Dan Elitzer (@delitzer) June 24, 2019