I am currently working on an on-chain powerball style lottery, and I think having the dao as our primary investor would go a long way for both the lottery we are building, and wmemo holders + dao participants. We are looking to raise $2 million, this money would go towards funding the development of the project, as well as seeding initial lottery pools to attract new users.
Objective:
By investing $2m into this project, wonderland will earn 50% of profits brought from selling powerball tickets (more information below), as well as other perks for wmemo holders, such as VIP NFTs giving free entries, discounts on buying tickets, etc.
Provide a High Level Overview:
Currently, there is not an on-chain, truly random lottery that exists, and I think it is about time. The powerball lottery (https://powerball.com/), does over $80 billion dollars of revenue in the United States per year, and I think by having a global, truly decentralized, guaranteed random on-chain lottery that we could top that.
Expected annual proceeds for wonderland dao are somewhere between $500 million and $1 billion, based on our initial calculations.
Provide Low Level Details:
Here is how the app works for an end user:
There are two lottery draws per week (Wednesday + Saturday)
In between the draw dates, users can come to our website and buy lottery ticket NFTs that contain 5 numbers between 1 and 70
During the draw, we will use true on-chain randomness to generate a winning combination, if a user holds the NFT with the matching numbers, they win the prize
If no such user exists, the prize is rolled over to the next draw, and users can buy tickets again for a chance to win.
Tickets will sell for somewhere in the 0.05 eth range, and the business will take around a 10-20% cut of revenue as profit.
This profit will be shared evenly between the business + wonderland dao
Eth profits will be added each month to the wonderland faucet
Business and/or technical requirements of the implementation of the proposal:
Wonderland dao to send $2m of USDC to the Powerball Treasury Address
We will deliver the app within a month, and start sales immediately
Additional:
wen token?
Eventually we plan to release a token to control certain gauges such as ticket price, profit earned per ticket sold, etc.
The token will be airdrop to holders of lottery ticket NFTs as well as member of the wonderland dao
This makes a ton of senseā¦ lottery is a proven business model and we could absolutely print.
Give people a big pile of money that is really hard to win and theyll buy all the ticketsā¦ that money comes right back to wonderlandā¦ wmemo price goes up. Its a true win / win / win.
Curious why 0.05 ETH for ticket, and why ETH ? I feel like 0.05 is a pretty hefty price for a lottery ticket. Why not stables ?
Have you checked into regulations ? Some places required a license to be able to offer a lottery. Unsure, how that would work on the blockchain, but should definitely be considered.
Also curious on how the revenue was calculated and what kind of projections were used.
Would definitely need more information on how that 2 million would be used.
Voted no. I think with Betswap already invested in we would be going to much in the gambling direction. Besides there may not be a blockchain lottery yet, but the regular ones have deep pockets and you would be hard pressed getting the word out. The 2 mil you would need for marketing alone.
I know, because back in the day I made good money off marketing them.
Not something Iād want to try during a bear marketā¦
Less even the cost is in the marketing and 2 mil wonāt get you there, it is a start. So I agree with you the chances of making a profit are slim to none. Especially if you think the regular lotteries that exist will play nice and let you get your slice of the marketā¦
I voted No. Crypto can already be enough of a gamble, I canāt see people really getting into a lottery on the blockchain.
Maybe worthwhile holding off until we see how Betswapp goes, as a kind of example of the genre.
Itās a nice idea, I definitely would not put it on ETH as the gas fees for buying a ticket will put the majority of people off, I imagine.
Also, could you maybe supply a breakdown of these āinitial calculationsā? This all reads a bit like a Dragonās Den proposal. Itās all too easy to convince people by saying āThis will make Wonderland a million-bazillion dollars a yearā (I know you only said between $500 mill and $1 billion, but you get my point.)
Could be interesting, but $2mm investment seems high - how would that money be used, exactly?
More details and info to the projected gains etc, as mentioned in other comments wiuld be useful.