Aolotto: The first decentralized lottery protocol in the AO ecosystem

Lottery has always been a consumer product for the general public, satisfying people's entertainment and hope needs, and has a broad mass base.

The lottery has always catered to the entertainment and aspiration needs of the mass consumer market. In Web3, 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:

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:

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 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:

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.

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